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 $10 per share at the time of the dividend.
b. A 2-for-1 stock split. Prior to the split, 65,000 shares of $1 par value common stock were outstanding.
c. Purchase of 1,500 shares of $0.50 par treasury stock at $7 per share.
d. Sale of 900 shares of $0.50 par treasury stock for $9 per share. Cost of the treasury stock was $8 per share.