Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver

تمرين 11

Effect of stock dividends, stock splits, and treasury stock transactions
Many types of transactions may affect stockholders' equity.
Requirement
1. Identify the effects of the following transactions on total stockholders' equity. Each transaction is independent.
a. A 10% stock dividend. Before the dividend, 520,000 shares of $1 par common stock were outstanding; market value was $3 at the time of the dividend.
b. A 2-for-l stock split. Prior to the split, 65,000 shares of $4 par common stock were outstanding.
c. Purchase of 1,000 shares of treasury stock (par value at $0.50) at $3 per share.
d. Sale of 900 shares of $0.50 par treasury stock for $5 per share. Cost of the treasury stock was $3 per share.