Problem 8-27 (Algo) Treasury stock transactions LO 8-3, 8-6

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On March 3, 2022, Docker Incorporated purchased 750 shares of its own common stock in the market at a price of $18.00 per share. On August 29, 2022, 450 of these shares were sold in the open market at a price of $20.50 per share. There were 35,000 shares of Docker common stock outstanding prior to the March 3 purchase of treasury stock. A $0.35 per share cash dividend on the common stock was declared and paid on July 2, 2022.

Problem 8-27 (Algo) Part 1 - Horizontal Model

Required:

Use the horizontal model on Docker's financial statements for the purchase of the treasury stock on March 3, 2022. Indicate the financial statement effect.

Use the horizontal model on Docker's financial statements for the declaration and payment of the cash dividend on July 2, 2022. Indicate the financial statement effect.

Use the horizontal model on Docker's financial statements for the declaration and payment of the sale of the treasury stock on August 29, 2022. Indicate the financial statement effect.