Solution: Which of the following events will cause The Hatching Jacket Co.’s total stockholders’ equity to decrease? a. Declaration of a 10% stock dividend b. Declaration and payment of a $1.25 a share cash dividend c. Issuance of no-par value common stock for $40,000 d. Declaration and distribution of a 3-for-1 stock split

Solution: Which of the following events will cause The Hatching Jacket Co.’s total stockholders’ equity to decrease? a. Declaration of a 10% stock dividend b. Declaration and payment of a $1.25 a share cash d

Problem

Which of the following events will cause The Hatching Jacket Co.’s total stockholders’ equity to decrease?

a. Declaration of a 10% stock dividend

b. Declaration and payment of a $1.25 a share cash dividend

c. Issuance of no-par value common stock for $40,000

d. Declaration and distribution of a 3-for-1 stock split