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Sweet Sixteen has two classes of stock authorized: $100 par value preferred and $1 par value common. As of the beginning of 2021, 1,000 shares
Sweet Sixteen has two classes of stock authorized: $100 par value preferred and $1 par value common. As of the beginning of 2021, 1,000 shares of preferred stock have been issued and 20,000 shares of common stock have been issued. The following transactions affected stockholders' equity during 2021:
March | 1 | Issues 3,000 additional shares of common stock for $22 per share. | ||
April | 1 | Issues 5,000 additional shares of preferred stock for $110 per share. | ||
June | 1 | Declares a cash dividend on common stock of $1 per share and a cash dividend on preferred stock of $5 per share to all stockholders of record on June 15. | ||
June | 30 | Pays the cash dividends declared on June 1. | ||
August | 1 | Purchases 2,000 shares of common treasury stock for $18 per share. | ||
October | 1 | Resells 1,000 shares of treasury stock purchased on August 1 for $20 per share. |
Required:
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Record each of these transactions.
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Select whether each of the following transactions increases ( + ) or decreases ( ) total assets, total liabilities, and total stockholders' equity.
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