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

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

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.	Declared a forward stock split on its common stock..	AnswerIncreaseDecreaseNo effect	AnswerRetained earningsCommon stock, at parAdditional paid in capitalTreasury stockNo accounts affected	AnswerIncreaseDecreaseNo effect
2.	Generated net income.	AnswerIncreaseDecreaseNo effect	AnswerRetained earningsCommon stock, at parAdditional paid in capitalTreasury stockNo accounts affected	AnswerIncreaseDecreaseNo effect
3.	Sold common stock.	AnswerIncreaseDecreaseNo effect	AnswerRetained earningsCommon stock, at parAdditional paid in capitalTreasury stockNo accounts affected	AnswerIncreaseDecreaseNo effect
			Additional paid in capital	AnswerIncreaseDecreaseNo effect
4.	Paid a cash dividend to its preferred shareholders.	AnswerIncreaseDecreaseNo effect	AnswerRetained earningsCommon stock, at parAdditional paid in capitalTreasury stockNo accounts affected	AnswerIncreaseDecreaseNo effect
5.	Issued a stock dividend on its outstanding common stock.	AnswerIncreaseDecreaseNo effect	Common stock, at par	AnswerIncreaseDecreaseNo effect
			Additional paid in capital	AnswerIncreaseDecreaseNo effect
			AnswerRetained earningsCommon stock, at parAdditional paid in capitalTreasury stockNo accounts affected	AnswerIncreaseDecreaseNo effect
6.	Repurchased shares of common stock.	AnswerIncreaseDecreaseNo effect	AnswerRetained earningsCommon stock, at parAdditional paid in capitalTreasury stockNo accounts affected	AnswerIncreaseDecreaseNo effect