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

Purchased $$351,000$ of common stock now held in treasury.

Declared cash dividends in the amount of $$260,500.$

Paid the dividends in $($b$).$

Issued $110,000$ new shares of $$0\mathrm{.}10$ par value common shares for $$2$ per share.

Closed the Dividends account.

Required:

$1.$ Indicate the effect $(+$ for increase, $$ for decrease, $+/$ for increase$/$decrease$)$ of each of these transactions on total assets, liabilities, and stockholders$$ equity. $($Leave cell blank if there is no effect.$)$

$2.$Prepare journal entries to record each of these events.

$3.$Prepare a statement of stockholders$$ equity, assuming the following opening balances. Net income for the current year was $$280,000.$

Common Stock Additional Paid$-$In Capital Retained Earnings Treasury Stock

Beginning $$13,000$ $$195,000$ $$151,000$ $$0$

Stock Issuances

Net Income $280,000$

Dividends: Common

Ending