Indicate the effect on the financial statement categories/subcategories as follo

Question

Indicate the effect on the financial statement categories/subcategories as follows: I – increase; D = decrease; N = no effect. Don’t leave any cells blank.

  Effect on

Contributed Capital (CC)

Transaction

  Effect on

Contributed Capital (CC)

Retained Earning Total Stockholders’ Equity Net Income Sold common stock Declared cash dividend Paid previously declared cash dividend Declared and issued stock dividend Declared property dividend; the property’s fair value is greater than its BV Purchased common stock to be resold later Sold TS in excess of cost Resold TS below cost (APIC-TS available) Retired common shares Resold TS below cost (APIC – TS not available)

Explanation / Answer

Transaction   Effect on Retained Earning Total Stockholders’ Equity Net Income Contributed Capital (CC) Sold common stock D N D N Declared cash dividend N N N N Paid previously declared cash dividend N D N D Declared and issued stock dividend N D N D Declared property dividend; the property’s fair value is greater than its BV N N N N Purchased common stock to be resold later I N I N Sold TS in excess of cost N I N I Resold TS below cost (APIC-TS available) N D N D Retired common shares D N D N Resold TS below cost (APIC – TS not available) N D N D

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