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For each transaction, indicate the transaction's effect on the company's accounting equation by selecting either increase, decrease, or no effect for each area of the accounting equation. Do not leave any of the fields below blank.

(If the transaction were to cause an increase and decrease to the same area of the accounting equation, "no effect" should be chosen as the overall effect to that area)
A. On May 1, issued 20,000 shares of $10 par common stock for $20 per share.
B. On June 1, purchased 4,000 shares of treasury stock for $25 per share.
C. On Sept 1, declared a 4-for-1 stock split.
D. On Oct 1, declared a dividend of $10,000 to be paid on Nov 15.
E. On Nov 15, paid the dividend previously declared on Oct 1.

2 Answers

3 votes
Answer c
Step by step explanation
answered
User Denis Hennessy
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8.3k points
3 votes

Answer:

C

Step-by-step explanation:

answered
User CmdNtrf
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8.3k points

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