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Please Answer Correctly:
Trans Union Corporation issued 5,000 shares for $50 per share in the current year, and it issued
10,000 shares for $37 per share in the following year. The year after that, the company
reacquired 20,000 shares of its own stock for $45 per share. Determine the impact (increase,
decrease, or no change) of each of these transactions on the following classifications:
Sold 5,000 Shares what is: total Assets ? Total Liabilities ? T otal Stockholders Equity ? Net
Income ?
Sold 10,000 Shares: what is: total Assets ? Total Liabilities ? T otal Stockholders Equity ?
Net Income ?
Purchased 20,0000 of Treasury Stocks: what is: total Assets ? Total Liabilities ? T otal
Stockholders Equity ? Net Income ?
Solution
1. Sold 5,000 Shares: What is: Total Assets = Increased by $250,000, Total Liabilities = No
Change, Total Stockholders Equity = Increased by $250,000, Net Income = No Change.
2. Sold 10,000 Shares: What is: Total Assets = Increased by $370,000, Total Liabilities = No
Change, Total Stockholders Equity = Increased by $370,000, Net Income = No Change.
3. Purchased 20,000 of Tresuary Stock: What is: Total Assets = Decreased by $900,000,
Total Liabilities = No Change, Total Stockholders Equity = Decreased by $900,000, Net
Income = No Change.
Please Answer Correctly- Trans Union Corporation issued 5-000 shares f.docx

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Please Answer Correctly- Trans Union Corporation issued 5-000 shares f.docx

  • 1. Please Answer Correctly: Trans Union Corporation issued 5,000 shares for $50 per share in the current year, and it issued 10,000 shares for $37 per share in the following year. The year after that, the company reacquired 20,000 shares of its own stock for $45 per share. Determine the impact (increase, decrease, or no change) of each of these transactions on the following classifications: Sold 5,000 Shares what is: total Assets ? Total Liabilities ? T otal Stockholders Equity ? Net Income ? Sold 10,000 Shares: what is: total Assets ? Total Liabilities ? T otal Stockholders Equity ? Net Income ? Purchased 20,0000 of Treasury Stocks: what is: total Assets ? Total Liabilities ? T otal Stockholders Equity ? Net Income ? Solution 1. Sold 5,000 Shares: What is: Total Assets = Increased by $250,000, Total Liabilities = No Change, Total Stockholders Equity = Increased by $250,000, Net Income = No Change. 2. Sold 10,000 Shares: What is: Total Assets = Increased by $370,000, Total Liabilities = No Change, Total Stockholders Equity = Increased by $370,000, Net Income = No Change. 3. Purchased 20,000 of Tresuary Stock: What is: Total Assets = Decreased by $900,000, Total Liabilities = No Change, Total Stockholders Equity = Decreased by $900,000, Net Income = No Change.