The annual report for Malibu Beachwear reported the following transactions affecting stockholders equity: a. Purchased $351,600 of common stock now held in treasury. b. Declared cash dividends in the amount of $260,800. c. Paid the dividends in (b). d. Issued 116,000 new shares of $0.10 par value common shares for $2 per share. e. Closed the Dividends account.

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

Prepare journal entries to record each of these events.