Trans Union Corporation issued 5,200 shares for $50 per share in the current year, and it issued 10,200 shares for $37 per share in the following year. The year after that, the company reacquired 20,200 shares of its own stock for $45 per share. Determine the impact (increase, decrease, or no change) of each of these transactions on the following classifications: **Trans Union Corporation Share Transactions Analysis**Trans Union Corporation has engaged in the following financial transactions related to their share offerings and repurchases:1. **Current Year:** - **Issued 5,200 Shares at $50 per Share**2. **Following Year:** - **Issued 10,200 Shares at $37 per Share**3. **Year After:** - **Reacquired 20,200 Shares of its Own Stock at $45 per Share**To understand the impact of these transactions on the company's financial statements, analyze the effect (either increase, decrease, or no change) on the following classifications:| Transactions | Total Assets | Total Liabilities | Total Stockholders’ Equity | Net Income ||---------------------------------------------------|--------------|-------------------|---------------------------|------------|| Sold 5,200 shares | | | | || Sold 10,200 shares | | | | || Purchased 20,200 shares of treasury stock | | | | |**Instructions:** Consider how the sale of shares increases cash (an asset) and equity, while the repurchase of shares decreases both assets and equity. These actions do not directly affect liabilities or net income.

When shares are sold or issued , cash account will be debited which increases the total assets and…

Answered: Trans Union Corporation issued 5,200…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Trans Union Corporation issued 5,200 shares for $50 per share in the current year, and it issued 10,200 shares for $37 per share in the following year. The year after that, the company reacquired 20,200 shares of its own stock for $45 per share. Determine the impact (increase, decrease, or no change) of each of these transactions on the following classifications:

**Trans Union Corporation Share Transactions Analysis**

Trans Union Corporation has engaged in the following financial transactions related to their share offerings and repurchases:

1. **Current Year:**
- **Issued 5,200 Shares at $50 per Share**
2. **Following Year:**
- **Issued 10,200 Shares at $37 per Share**
3. **Year After:**
- **Reacquired 20,200 Shares of its Own Stock at $45 per Share**

To understand the impact of these transactions on the company's financial statements, analyze the effect (either increase, decrease, or no change) on the following classifications:

| Transactions | Total Assets | Total Liabilities | Total Stockholders’ Equity | Net Income |
|---------------------------------------------------|--------------|-------------------|---------------------------|------------|
| Sold 5,200 shares | | | | |
| Sold 10,200 shares | | | | |
| Purchased 20,200 shares of treasury stock | | | | |

**Instructions:** Consider how the sale of shares increases cash (an asset) and equity, while the repurchase of shares decreases both assets and equity. These actions do not directly affect liabilities or net income.

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