Final answer:
Without specific information on June’s transactions, it is impossible to say whether stockholders’ equity increased or decreased. Transactions that could affect equity include profits, losses, dividends, and changes in asset values. Additionally, changes to Singleton Bank's balance sheet do not necessarily alter stockholders' equity if the overall balance remains the same.
Step-by-step explanation:
Impact of June’s Transactions on Stockholders’ Equity
The question does not provide specific details about the transactions made by June, so it is not possible to determine how the transactions have affected stockholders’ equity without additional information. Stockholders' equity could be increased through earnings from profitable operations and increased business valuation or contributions like additional share purchases. Conversely, stockholders’ equity could decrease through losses, dividend payments, or share buybacks. To assess the impact of specific transactions, you would need a detailed list of June’s business activities that affect equity, including sales, expenses, and any dividends issued.
As for the Singleton Bank scenario provided, changing assets on a bank's balance sheet typically alters the equity position. When Singleton's assets shifted to $1 million in reserves and a $9 million loan to Hank's Auto Supply, while maintaining $10 million in deposits, the overall balance sheet and thus stockholders' equity may remain the same, assuming no other changes to liabilities or equity occurred. However, the risk profile may change, affecting future equity through changes in the value of assets or the cost of liabilities.
Discussions around dividends and capital gains are also directly relevant to stockholders' equity. Dividends reduce equity as they are paid out from the company's earnings, while capital gains represent potential increases in equity through the appreciation of the company's stock value as perceived by the market.