Question
Many types of transactions may affect stockholders' equity. Identify the effects of the following transactions on total stockholders' equity. Each transaction is independent. A. A
Many types of transactions may affect stockholders' equity. Identify the effects of the following transactions on total stockholders' equity. Each transaction is independent.
A. A 10% stock divident. Before the divident, 560,000 shares of $1 par value common stock were outstanding; market value was $10 per share at the time of the dividend.
B. A 2-for-1 stock split. Prior to the split, 65,000 shares of $1 par value common stock were outstanding.
C. Purchase of 1,500 shares of $.50 par treasury stock at $7 per share.
D. Sale of 900 shares of $.50 par treasury stock for $9 per share. Cost of the treasury stock was $8 per share.
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