On May 4, 2019, Docker Inc. purchased 850 shares of its own common stock in the market at a price of $18.50 per share. On September 19, 2019, 500 of these shares were sold in the open market at a price of $20.20 per share. There were 35,000 shares of Docker common stock outstanding prior to the May 4 purchase of treasury stock. A $0.35 per share cash dividend on the common stock was declared and paid on June 15, 2019.

Required: a. Use the horizontal model on Docker's financial statements for the purchase of the treasury stock on May 4, 2019. Indicate the financial statement effect.

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Stockholders Equity

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Net Income

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b. Use the horizontal model on Docker's financial statements for the declaration and payment of the cash dividend on June 15, 2019. Indicate the financial statement effect.

Assets

=

Liabilities

+

Stockholders Equity

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Net Income

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Revenues

-

Expenses

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+

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=

-

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c. Use the horizontal model on Docker's financial statements for the declaration and payment of the sale of the treasury stock on September 19, 2019. Indicate the financial statement effect.

Assets

=

Liabilities

+

Stockholders Equity

<-

Net Income

=

Revenues

-

Expenses

=

+

<-

=

-

=

+

<-

=

-