Question
The following are selected transactions that may affect stockholders' equity. 1.Recorded accrued interest earned on a note receivable.2.Declared a cash dividend.3.Declared and distributed a stock
The following are selected transactions that may affect stockholders' equity.
1.Recorded accrued interest earned on a note receivable.2.Declared a cash dividend.3.Declared and distributed a stock split.4.Approved a retained earnings restriction.5.Recorded the expiration of insurance coverage that was previously recorded as prepaid insurance.6.Paid the cash dividend declared in item 2 above.7.Recorded accrued interest expense on a note payable.8.Declared a stock dividend.9.Distributed the stock dividend declared in item 8.
In the following table, indicate the effect each of the nine transactions has on the financial statement elements listed.
Item
Assets
Liabilities
Stockholders'
Equity
Paid-in
Capital
Retained
Earnings
Net
Income
1.
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
2.
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
3.
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
4.
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
5.
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
6.
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
7.
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
8.
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
9.
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
Decrease
Increase
No effect
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Financial And Managerial Accounting
Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell
4th Edition
1119752620, 978-1119752622
