The following are selected transactions that may affect stockholders equity. 1. Paid the cash dividend declared in

Question:

The following are selected transactions that may affect stockholders€™ equity.
1. Paid the cash declared in a prior year.
2. Recorded a retained earnings appropriation.
3. Recorded accrued interest earned on a note receivable from a major shareholder.
4. Purchased treasury stock. (The company uses the cost method.)
5. Recorded salary expense accrual.
6. Declared a cash on preferred stock.
7. Declared and distributed a 5% stock Issued $1 (current market price of $75 per share) in exchange for land.

Instructions
In the table below, indicate the effect each of the eight transactions has on the financial statement elements listed. Use the following code:
I = Increase D = Decrease NE = Noeffect

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...