Intermediate Accounting II

17) For each of the following items, indicate in the space provided what effect it has on individual categories in stockholders' equity and on stockholders' equity overall Enter a "*" for increase; a "-" for decrease; or "NE" for no effect. (1 point per box total of 10 points) EVENT CATEGORY EFFECT 1 Converted $60,000 of bonds into 10,000 shares of $10-par common Additional paid-in capital stock. Stockholders' equity overall 2 Discovered that interest expense the previous year was understated Retained earnings by $5,000. Stockholders' equity overall 3 Retired treasury stock costing $50,000. The initial issue of the stock Capital stock was for $55,000 Stockholders' equity overall Retained Earnings 4 Paid a cash dividend previously declared. Stockholders' equity overall 5 Sold treasury stock costing $6,000 for $6,200. There was no balance Retained earnings is Additional Paid-in Capital from Treasury Stock Stockholders' equity overall 3