Determine the Effect of the Following Transactions on the Financial

question 53

Essay

Determine the effect of the following transactions on the financial statement components identified.Code your answers as follows:
A: If the transaction results in an increase in the financial statement component.
B: If the transaction results in a decrease in the financial statement component.
C.If the transaction does not affect the financial statement component.
Transaction 1: Common stock was sold at a price in excess of par value.
Net income _____
Total assets _____
Stockholders' equity _____
Transaction 2: Treasury stock was purchased using cash.
Net income _____
Total assets _____
Stockholders' equity _____
Transaction 3: Treasury stock was resold for cash at a price less than the treasury stock's cost.
Net income _____
Total assets _____
Stockholders' equity _____
Transaction 4: Treasury stock was resold for cash at a price greater than the treasury stock's cost.
Net income _____
Total assets _____
Stockholders' equity _____

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Definitions:

Crime

Crime denotes acts that violate laws and are punishable by the state or other authority.

Powerful Groups

Entities in society with significant influence or control over resources, decision-making processes, and policy outcomes.

Norms

Generally accepted ways of doing things.

Laws

The system of rules that a particular country or community recognizes as regulating the actions of its members and may enforce by the imposition of penalties.