(Equity Items on the Balance Sheet) 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.InstructionsIn the following table, indicate the effect each of the nine transactions has on the financial statement elements listed. Use the following code: I = Increase, D = Decrease, NE = No effect. Item Assets Liabilities Stockholders’Equity Paid-inCapital RetainedEarnings NetIncome
(Equity Items on the Balance Sheet) 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.InstructionsIn the following table, indicate the effect each of the nine transactions has on the financial statement elements listed. Use the following code: I = Increase, D = Decrease, NE = No effect. Item Assets Liabilities Stockholders’Equity Paid-inCapital RetainedEarnings NetIncome
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter2: Basic Accounting Systems: Cash Basis
Section: Chapter Questions
Problem 2.6E: Effects of transactions on stockholders’ equity For Target Corporation (TGT), indicate whether the...
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Question
(Equity Items on the Balance Sheet) 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
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.
Instructions
In the following table, indicate the effect each of the nine transactions has on the financial statement elements listed. Use the following code: I = Increase, D = Decrease, NE = No effect.
| Item | Assets | Liabilities | Stockholders’ Equity |
Paid-in Capital |
Retained Earnings |
Net Income |
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