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Question: Determining the effect of stock dividends, stock splits, and treasury stock transactions Many types of transactions may affect stockholders' equity. Identify the effects of the following transactions on total stockholders' equity. Each transaction is independent.
a. A 10% stock dividend. Before the dividend, 560,000 shares of $1 par value common stock were outstanding; market value was $8 at the time of the dividend.
b. A 2-for-1 stock split. Prior to the split, 66,000 shares of $3 par value common stock were outstanding.
c. Purchase of 1,300 shares of $0.50 par treasury stock at $4 per share.
d. Sale of 200 shares of $0.50 par treasury stock for $10 per share. Cost of the treasury stock was $8 per share.
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