1. Indicate the effect of each of the following transactions on total stockholde

Question

1. Indicate the effect of each of the following transactions on total stockholders' equity by placing an "X" in the appropriate column. Increase Decrease No Effect 1. Treasury stock is resold at more than cost 2. Operating loss for the period 3. Retirement of bonds payable at more than book value. 4. Declaration of a stock dividend. 5. Acquisition of machinery for common stock. 6. Conversion of bonds payable into common stock 7. Not declaring a dividend on cumulative prefexted stock 8. Declaration of cash dividend. 9. Payment of cash dividend. 10. Distribution of a stock dividend.

Explanation / Answer

SR. NO. PARTICULARS Increase   Decrease No Effect 1) Treasurry Stock is sold more than cost Increase - - 2) Operating loss of the period Increase - - 3) Retirement of Bonds payable at more than book value - Decrease - 4) Declaration of stock Dividend - - No effect 5) Acquisittion of Machinary for Common stock Increase - - 6) Conversion of Bonds payable into common stock - - No effect 7) Not Declaring a dividend on cumulative preferred stock - - No effect 8) Declaration of Cash Dividend - - No effect 9) Payment of cash dividend - Decrease - 10) Distribution of Stock Dividend - - No effect

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.