E$14\mathrm{.}11$B $($LO $3,4)($Equity Items on the Balance Sheet$)$ The following are selected transactions that may affect stockholders' equity:

Paid the cash dividend declared in a prior year.

Recorded a retained earnings appropriation.

Recorded accrued interest earned on a note receivable from a major shareholder.

$4$Exercises.indd $3$

$\frac{03}{08}\frac{?}{22}5$:$02$ PM

c$14\_$Kieso$18$e$\_1$PP

L

LUMINA

DATAMATICS

Purchased treasury stock. $($The company uses the cost method.$)$

Recorded salary expense accrual.

Declared a cash dividend on preferred stock.

Declared and distributed a $5\%$ stock dividend.

Issued $$1$ par value common stock $($current market price of $$75$ per share$)$ in exchange for land.

Instructions

In the table below, indicate the effect each of the eight transactions has on the financial statement elements listed. Use the following code:

$I=$ Increase $,D=$ Decrease $,NE=No$ effect

$\backslash$table$[[$Item$],[1],[2],[3],[4],[5],[6],[7],[8]]$

Stockholders? Paid$-in$

Equity Capital

Retained

Net

Earnings

Income