Indicate How Each of the Following Transactions Affects the Financial

question 97

Essay

Indicate how each of the following transactions affects the financial statements model, below:
a) Issued 40,000 shares of common stock with a $20 par value for cash of $25 per share.
b) Purchased 400 shares of treasury stock (common stock) at $30 per share.
c) Resold 100 shares of the treasury stock at $35 per share.

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Definitions:

Learning

The process of acquiring knowledge or skills through experience, study, or being taught.

Secondary Reinforcer

A learned stimulus that gains its reinforcing power through its association with a primary reinforcer.

Money

A medium of exchange in the form of coins and banknotes; used to facilitate transactions for goods, services, and debts.

Food

Nutritious substances that organisms consume or absorb in order to maintain life and growth.