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Indicate the effect of the following event on the companys accounting equation. For each account title affected indicate the specific account name, dollar change, and whether it increased or decreased. Show the correct effect in the Stockholders Equity column so the Balance Sheet balances.

Paid cash to reacquire 1,000 shrs. of common stock for $30/shr.

		Decreased the asset cash $30,000, the stockholders' equity accounts common stock $5,000 and additional paid in capital-common $25,000.
		Decreased the asset cash $30,000, the stockholders' equity account treasury stock $30,000.
		Decreased the asset cash $30,000, and increased the stockholders' equity account treasury stock thereby decreasing total stockholders' equity $30,000.
		Increased the asset cash $30,000, the stockholders' equity account treasury stock $30,000.

QUESTION 48

1. Indicate the effect of the following event on the companys accounting equation. For each account title affected indicate the specific account name, dollar change, and whether it increased or decreased. Show the correct effect in the Stockholders Equity column so the Balance Sheet balances.

   Declared a $8/shr. Cash Dividend on the 1,000 shrs. of Pref. Sk. and $10/shr. On 10,000 shrs. of common stock.

   		Decrease the asset cash and the stockholders' equity retained earnings $108,000
   		Increase the liability dividends payable and decrease the stockholders' equity retained earnings $108,000
   		Increase the liability dividends payable and decrease the stockholders' equity retained earnings $100,000
   		Decrease the liability dividends payable and Increase the stockholders' equity retained earnings $108,000

QUESTION 47

1. Indicate the effect of the following event on the companys accounting equation. For each account title affected indicate the specific account name, dollar change, and whether it increased or decreased. Show the correct effect in the Stockholders Equity column so the Balance Sheet balances.

   Issued 10,000 shrs. $5 par, Common stock, for $25 Cash per share.

   		Increased the asset cash $250,000, the stockholders' equity accounts common stock $50,000 and additional paid in capital-common $200,000.
   		Increased the asset cash $250,000, the stockholders' equity account common stock $250,000.
   		Increased the asset cash $50,000, the stockholders' equity account common stock $50,000.
   		Increased the asset cash $250,000, the stockholders' equity accounts common stock $50,000 and retained earnings $200,000.

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