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In June 2019. Newcastle Inc. issued 2,000 shares of common stock (with $1 par value) at a market price of $25 per share. In Dec
In June 2019. Newcastle Inc. issued 2,000 shares of common stock (with $1 par value) at a market price of $25 per share. In Dec 2019, Newcastle Inc. repurchased 500 shares of its common stock for $22 cash per share. In August 2021, Newcastle Inc. announced a 3-for-1 stock split. On the split date, Newcastle had about 1 million shares outstanding. Use the above information to answer the following questions. a) How will the cash account, common stock account, and additional paid-in capital account be affected in June 2019? (3) b) What is the change in the treasury stock account in Dec 2019 as a result of the stock repurchase? (3) c) How will the equity section of the balance sheet be affected by the stock split in August 2021? (3)
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