Transaction affects the capital structure


Describe how each of the following transaction affects the capital structure of a company. Is there an effect on the short-term liability portion, the long-term liability portion, the equity portion, or is there no effect at all?

a. The issuance of common stock
b. The sale of bonds
c. The purchase of equipment for each
d. The purchase of inventory on credit
e. The purchase of treasury stock
f. The borrowing of ash, with a two-year note, from a bank
g. The declaration of dividends to stockholders
h. The payment of dividends

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Accounting Basics: Transaction affects the capital structure
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