Listed below are various transactions that a company incurred during the current year. Select the impact on total stockholders equity for each scenario. Specifically state whether stockholders equity would Increase, Decrease, or have No Effect as a result of each transaction listed below. Consider each transaction independently.

A stock dividend equal to 30% of the previously outstanding shares in declared

New shares of common stock are issued for cash

Treasury shares of common stock are purchased (assume the cost method)

Cash dividends are paid to shareholders

Identify the inventory costing method best described by each of the following separate statements. Assume a period of increasing costs.

Yields a balance sheet inventory amount often markedly less than its replacement cost

Results in a balance sheet inventory amount approximately replacement cost

Provides a tax advantage(deferral) to a corporation when costs are rising

Recognizes (matches) recent costs against not sales

The preferred method when each unit of product has unique features that markedly affect cost

For each item below indicate whether the statement describes a multiple-step income statement or a single-step income statement.

Typically shows detailed computations of net sales and other costs and expenses

Statement limited to two main categories(revenues and expenses)

Reports gross profit as a separate line item

Reports net income equal to income from operations adjusted for any nonoperating items

Identify whether each description best applies to a periodic or a perpetual inventory system.

Updates the inventory account only at period-end

Requires an adjusting entry to record inventory shrinkage

Markedly increased in frequency and popularity in business within the past decade

Records cost of goods sold each time a sales transaction occurs

Provides more timely information to managers