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Transactions include the following: 1. Declaration of a stock dividend. 2. Purchase of 50 percent of the outstanding stock of another company. 3. Payment of
Transactions include the following: 1. Declaration of a stock dividend. 2. Purchase of 50 percent of the outstanding stock of another company. 3. Payment of previously accrued interest payable. 4. Accrual of interest expense. 5. Purchase of machinery. 6. Recognition of depreciation on machinery. 7. Purchase of treasury stock. 8. Sale of treasury stock at a price less than its original cost. 9. Conversion of debt lo common stock. 10. Receipt of cash on an outstanding receivable. 11. Sale of inventory on account. 12. Purchase of inventory on account. 13. Declaration of dividends. 14. Receipt of dividends on short-term marketable securities. 15. Early retirement of outstanding long-term debt. a. Refer to Figure 13-2 in the text, and classify each transaction in one of the following categories: (1) Exchanges with shareholders (2) Exchanges of liabilities and shareholders? equity
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