The annual report for Malibu Beachwear reported the following transactions affecting stockholders equity:

a)Purchased $351,800 of common stock now held in treasury.

B)Declared cash dividends in the amount of $260,900.

c)Paid the dividends in (b).

d)Issued 118,000 new shares of $0.10 par value common shares for $2 per share.

e)Closed the Dividends account.

1)Required: Indicate the effect (+ for increase, for decrease, +/ for increase/decrease) of each of these transactions on total assets, liabilities, and stockholders equity.

2.Prepare journal entries to record each of these events

3.Prepare a statement of stockholders equity, assuming the following opening balances.

Stockholders' Assets Liabilities Equity . b. C. d. . Additional Paid-In Capital Treasury Stock Retained Common Stock Earnings Beginning $ $ $ 13,400 199,000 151,800 10 Stock Issuances Net Income 288,000 Dividends: Common Ending $ $ 13,400 199,000 439,800