Impact on Statement of Changes in Equity of DEF Industries

Very Hard Financial Statements Statement Of Changes In Equity

During the annual financial reporting of DEF Industries for the year ending December 31, 2023, the following events occurred:

Issued 10,000 shares of common stock at $15 per share.
Declared and paid a cash dividend of $2 per share on 20,000 shares of outstanding preferred stock.
Reported net income of $200,000.
Purchased treasury stock totaling $50,000.

Based on these events, which of the following statements accurately describes the impact on the Statement of Changes in Equity?

Total equity increased by $100,000 after accounting for the stock issuance, net income, and treasury stock purchase.

Total equity decreased by $200,000 due to the payment of dividends and treasury stock purchases.

Total equity increased by $170,000 when including the net income, stock issuance, and subtracting the dividends and treasury stock.

Submitted11.2K

Correct10.2K

% Correct91%