Many types of transactions may affect stockholders' equity. Identify the effects of the following transactions on total stockholders' equity. Each transaction is independent. LOADING... (Click the icon to view the transactions.) (Complete all input boxes. For transactions with no effect, make sure to enter "0" in the amount column.) Effect on Total Stockholders' Equity Amount a. A 10% stock dividend. Before the dividend, 580,000 shares of $1 par value common stock were outstanding; market value was $4 per share at the time of the dividend. b. A 2-for-1 stock split. Prior to the split, 61,000 shares of $3 par value common stock were outstanding. c. Purchase of 1,300 shares of $0.50 par treasury stock at $6 per share. d. Sale of 600 shares of $0.50 par treasury stock for $7 per share. Cost of the treasury stock was $6 per share. a. A 10% stock dividend. Before the dividend, 580,000 shares of $1 par value common stock were outstanding; market value was $4 per share at the time of the dividend. b. A 2-for-1 stock split. Prior to the split, 61,000 shares of $3 par value common stock were outstanding. c. Purchase of 1,300 shares of $0.50 par treasury stock at $6 per share. d. Sale of 600 shares of $0.50 par treasury stock for $7 per share. Cost of the treasury stock was $6 per share.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Many types of transactions may affect stockholders' equity. Identify the effects of the following transactions on total stockholders' equity. Each transaction is independent.

(Click

the icon to view the transactions.)

(Complete all input boxes. For transactions with no effect, make sure to enter "0" in the amount column.)

Effect on Total Stockholders' Equity

Amount

A 10% stock dividend. Before the dividend, 580,000 shares of $1 par value common stock were outstanding; market value was $4 per share at the time of the dividend.

A 2-for-1 stock split. Prior to the split, 61,000 shares of $3 par value common stock were outstanding.

Purchase of 1,300 shares of $0.50 par treasury stock at $6 per share.

Sale of 600 shares of $0.50 par treasury stock for $7 per share. Cost of the treasury stock was $6 per share.

a.	A 10% stock dividend. Before the dividend, 580,000 shares of $1 par value common stock were outstanding; market value was $4 per share at the time of the dividend.
b.	A 2-for-1 stock split. Prior to the split, 61,000 shares of $3 par value common stock were outstanding.
c.	Purchase of 1,300 shares of $0.50 par treasury stock at $6 per share.
d.	Sale of 600 shares of $0.50 par treasury stock for $7 per share. Cost of the treasury stock was $6 per share.

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