Indicate by letter whether each of the transactions listed below increases (I), decreases (D), or has no effect (N) on retained earnings. Assume the shareholders' equity of the transacting company includes only common stock, paid-in capitalexcess of par, and retained earnings at the time of each transaction. (Some transactions have two possible answers. Indicate both.)

• Transactions

1. Sale of common stock

2. Purchase of treasury stock at a costlessthan the original issue price

3. Purchase of treasury stock at a costgreaterthan the original issue price

4. Declaration of a property dividend

5. Sale of treasury stock formorethan cost

6. Sale of treasury stock forlessthan cost

7. Net income for the year

8. Declaration of a cash dividend

9. Payment of a previously declared cash dividend

10. Issuance of convertible bonds for cash

11. Declaration and distribution of a 5% stock dividend

12. Retirement of common stock at a costlessthan the original issue price

13. Retirement of common stock at a costgreaterthan the original issue price

14. A stock split effected in the form of a stock dividend

15. A stock split in which the par value per share is reduced (not effected in the form of a stock dividend)

16. A net loss for the year