Shareholders Equity Transactions The following transactions occurred during the year for The Niagara Company:

1. Generated net income of $2.5 million.
2. Sold common stock having a par value of $0.01 for $22 per share.
3. Paid a cash dividend of $2 per share to its preferred shareholders.
4. Issued a 10% stock dividend on its outstanding common stock.
5. Repurchased 10,000 shares of common stock at $18 per share.
6. Declared a 2-for-1 forward stock split on its common stock.

Identify whether the above transactions increased, decreased, or had no effect on total shareholders equity. Identify the specific shareholders equity accounts affected by each transaction and indicate whether the accounts increased, decreased, or remained unchanged.

Transaction		Effect on Total Shareholders' Equity	Accounts Affected	Impact
1.	Generated net income of $2.5 million.	IncreaseDecreaseNo effect	Retained earningsCommon stock, at parAdditional paid in capitalTreasury stockNo accounts affected	IncreaseDecreaseNo effect
2.	Sold common stock having a par value of $0.01 for $22 per share.	IncreaseDecreaseNo effect	Retained earningsCommon stock, at parAdditional paid in capitalTreasury stockNo accounts affected	IncreaseDecreaseNo effect
			Additional paid in capital	IncreaseDecreaseNo effect
3.	Paid a cash dividend of $2 per share to its preferred shareholders.	IncreaseDecreaseNo effect	Retained earningsCommon stock, at parAdditional paid in capitalTreasury stockNo accounts affected	IncreaseDecreaseNo effect
4.	Issued a 10% stock dividend on its outstanding common stock.	IncreaseDecreaseNo effect	Common stock, at par	IncreaseDecreaseNo effect
			Additional paid in capital	IncreaseDecreaseNo effect
			Retained earningsCommon stock, at parAdditional paid in capitalTreasury stockNo accounts affected	IncreaseDecreaseNo effect
5.	Repurchased 10,000 shares of common stock at $18 per share.	IncreaseDecreaseNo effect	Retained earningsCommon stock, at parAdditional paid in capitalTreasury stockNo accounts affected	IncreaseDecreaseNo effect
6.	Declared a 2-for-1 forward stock split on its common stock.	IncreaseDecreaseNo effect	Retained earningsCommon stock, at parAdditional paid in capitalTreasury stockNo accounts affected	IncreaseDecreaseNo effect

Shareholders' Equity Transactions The following transactions occurred during the year for The Niagara Company: 1. Generated net income of $2.5 million. 2. Sold common stock having a par value of $0.01 for $22 per share. 3. Paid a cash dividend of $2 per share to its preferred shareholders. 4. Issued a 10% stock dividend on its outstanding common stock. 5. Repurchased 10,000 shares of common stock at $18 per share. 6. Declared a 2-for-1 forward stock split on its common stock. Identify whether the above transactions increased, decreased, or had no effect on total shareholders' equity. Identify the specific shareholders' equity accounts affected by each transaction and indicate whether the accounts increased, decreased, or remained unchanged. Transaction 1. Generated net income of $2.5 million 2. Sold common stock having a par value of $0.01 for $22 per share Paid a cash dividend of $2 per share to its preferred 3. shareholders. 4. Issued a 10% stock dividend on its outstanding common stock. Repurchased 10,000 shares of common stock at $18 per share. 5. 6. Declared a 2-for-1 forward stock split on its common stock. Effect on Total Accounts Shareholders' Equity Affected Impact re. Additional paid in capital Common stock, at par Additional paid in capital Increase Decrease No effect Retained earnings Common stock, at par Additional paid in capital Treasury stock No accounts affected