E15-11B (L03,4) (Equity Items on the Balance Sheet) The following are selected transactions that may affect stockholders

equity.

1.Paid the cash dividend declared in a prior year.

2.Recorded a retained earnings appropriation.

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

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

5.Recorded salary expense accrual.

6.Declared a cash dividend on preferred stock.

7.Declared and distributed a 5% stock dividend.

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

Instructions: DO ENTRIES AND CHART

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

Item -	Assets -	Liabilities -	Stockholders Equity -	Paid-in Capital -	Retained Earnings -	Net Income
1
2
3
4
5
6
7
8