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. Choose the best choice from the drop-down menu. The first answer is provided as an example.)

N Transactions 1. Sale of common stock 2. Purchase of treasury stock at a cost less than the original issue price 3. Purchase of treasury stock at a cost greater than the original issue price 4. Declaration of a property dividend 5. Sale of treasury stock for more than cost 6. Sale of treasury stock for less than 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 cost less than the original issue price 13. Retirement of common stock at a cost greater than 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