E14-6B During 2017, Sedgwick Corporation had the following transactions and events.

1. Declared a cash dividend.

2. Issued par value common stock for cash below par value.

3. Completed a 2-for-1 stock split in which $10 par value stock was changed to $5 par value stock.

4. Declared a small stock dividend when the market value was higher than par value.

5. Made a prior period adjustment for understatement of net income.

6. Issued the shares of common stock required by the stock dividend declaration in item no. 4 above.

7. Paid the cash dividend in item no. 1 above.

8. Issued par value common stock for cash above par value.

Instructions Indicate the effect(s) of each of the foregoing items on the subdivisions of stockholders equity. Present your answer in tabular form with the following columns. Use (I) for increase, (D) for decrease, and (NE) for no effect. Item no. 1 is given as an example.PLEASE SHOW THE ACTUAL TRANSACTIONS AS WELL

Paid-in Capital

(Item) (Capital Stock) ((Paid-In Capital (PreferredStock/CommonStock)) (Retained Earnings) (Assets) (Liabilities)

(1) (NE) (N/E) (D) (N/E) (I)

NOTE: please show the TRANSACTIONS as well. AND if you could explain anything needed as well that would be beneficial. Thanks

I think item #1 is:

Debit: Cash Dividend

Credit: Dividend Payable

Debit: Retained Earnings

Credit: Cash Dividend