The annual report for Malibu Beachwear reported the following transactions affecting stockholders' equity: a. Purchased $3.5 million

Question:

The annual report for Malibu Beachwear reported the following transactions affecting stockholders' equity:
a. Purchased $3.5 million in treasury stock.
b. Declared and paid cash dividends in the amount of $254.2 million.
c. Issued 100 percent involving 222.5 million additional shares with a total of $556.3 million.
Required:
1. Indicate the effect (increase, decrease, or no effect) of each of these transactions on total assets, liabilities, and stockholders' equity.
2. Prepare journal entries to record each of these transactions?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...