Question - On Oct 1, ABC corporation authorized two things: 1. the issuance of additional 1000 shares of common stock. 2. the issuance of 500 shares of common stock dividends. (par value: $10/sh, market value: $15/sh as of 10/1)
- Would these two activities affect the stockholder's equity?
- What is a Treasury Stock and what is its normal balance? How is it reported in the stockholder's equity?