question 7.1

LO 7-1, LO 73 Questions and Exercises decrease, or no effect) of each transaction on the components of the book value don 7.1 Common Equity Transactions. Describe the directional effea shareholders' equity shown in the chart below. a. Issuance of $1 par value common stock at an amount greater than par value b. Donation of land by a governmental unit to a corporation c. Cash dividend declared d. Previously declared cash dividend paid e. Property dividend declared and paid f. Large stock dividend declared and issued 9. Small stock dividend declared and issued h. 2-for-1 stock split announced and issued Stock options granted J. Recognition of compensation expense on stock options k. Stock options exercised I. Stock options expired m. Treasury stock acquired (company uses the cost method) n. Treasury stock in Transaction m reissued at an amount greater than the original scout 7.2 its Cor Ado Ret tion price o. Treasury stock in Transaction m reissued at an amount less than the original acquisition price p. Restricted stock issued (grant date) 4. Recognition of compensation expense related to restricted stock 1. Granting of stock appreciation rights to be settled with cash s. Recognition of compensation expense on stock appreciation rights t. Reacquisition and retirement of common stock at an amount greater than price tion price n. Treasury stock in Transaction m reissued at an amount greater win the original o. Treasury stock in Transaction m reissued at an amount less than the originai acqua price p. Restricted stock Issued (grant date) 4. Recognition of compensation expense related to restricted stock . Granting of stock appreciation rights to be settled with cash s. Recognition of compensation expense on stock appreciation rights t. Reacquisition and retirement of common stock at an amount greater than original lese price Retained Earnings (use to indicate income statement effect) Item Additional Paid-in Capital Common Stock Total Common Shareholders Equity Deferred Compensation Treasury Stock at Cost a. b. LO 7-1 7.2 Common Equity Issue. Assume that a start-up manufacturing company raises capital through a series of equity issues. a. Using the financial statement template below summarize the