QUESTION 3.1 (16 marks) For the following eight scenarios, please indicate the effect of each of the following transactions on total shareholders' equity by placing an "X" in the appropriate column. Increase Decrease No Effect 1. Declaration of a cash dividend. 2. Operating loss for the period. 3. Retirement of bonds at more than carrying value. 4. Declaration of a stock dividend. 5. Exchanging common shares for machinery 6. Conversion of bonds into common shares. 7. Not declaring a dividend on cumulative preferred shares. 8. Payment of a cash dividend