(Learning Objective 3, 4: Measuring the effects of dividend and treasury stock transactions on a company) Niles Corporation completed the following selected transactions during the current year:
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Mar. 3 |
Distributed a 10% stock dividend on the 90,000 shares of common stock outstanding ($2.50 par). The market value of the common stock was $25 per share. |
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May 16 |
Declared a cash dividend on the 5%, $100 par preferred stock (5,000 shares outstanding). |
|
30 |
Paid the cash dividends. |
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Oct. 26 |
Purchased 1,500 shares of treasury stock at $24 per share. |
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Dec. 8 |
Sold all of the treasury stock for $27 per share. |
|
19 |
Issued 10,000 shares of common stock ($2.50 par) for $28 per share. |
Required
Analyze each transaction in terms of its effect on the accounting equation of Niles Corporation.