Luna Company had the following transactions during the current year:
1: Luna Company sells 100,000 shares of its no-par common stock for $60.
2: Luna Company buys 5,000 shares of its no-par common stock for $45 per share.
3: Luna Company declares and pays a dividend on its no-par common stock of $9per share.
Indicate the effect (increase, decrease, no effect) of each of these stock decisions for each year on the items listed below.

Question

Luna Company had the following transactions during the current year: 
1: Luna Company sells 100,000 shares of its no-par common stock for $60.
2: Luna Company buys 5,000 shares of its no-par common stock for $45 per share.
3: Luna Company declares and pays a dividend on its no-par common stock of $9per share.
Indicate the effect (increase, decrease, no effect) of each of these stock decisions for each year on the items listed below.

Quizplus · Accepted Answer

The Answer of Luna Company had the following transactions during the current year: 
1: Luna Company sells 100,000 shares of its no-par common stock for $60.
2: Luna Company buys 5,000 shares of its no-par common stock for $45 per share.
3: Luna Company declares and pays a dividend on its no-par common stock of $9per share.
Indicate the effect (increase, decrease, no effect) of each of these stock decisions for each year on the items listed below.

Luna Company Had the Following Transactions During the Current Year