Indicate by letter whether each of the transactions listed below increases (I), decreases (D), or has no effect (N) on retained earnings. Assume the shareholders' equity of the transacting company includes only common stock, paid-in capital-excess of par, and retained earnings at the time of each transaction. (Some transactions have two possible answers. Choose the best choice from the drop down menu. The first answer is provided as an example.) Transactions 1. Sale of common stock IN 2. Purchase of treasury stock at a cost less than the original issue price 3. Purchase of treasury stock at a cost greater than the original issue price 4. Declaration of a property dividend 5. Sale of treasury stock for more than cost 6. Sale of treasury stock for less than cost 7. Net income for the year 8. Declaration of a cash dividend 9. Payment of a previously declared cash dividend 10. Issuance of convertible bonds for cash 11. Declaration and distribution of a 5% stock dividend 12. Retirement of common stock at a cost less than the original issue price 13. Retirement of common stock at a cost greater than the original issue price 14. A stock split effected in the form of a stock dividend 15. A stock split in which the par value per share is reduced (not effected in the form of a stock dividend) 16. A net loss for the year
Indicate by letter whether each of the transactions listed below increases (I), decreases (D), or has no effect (N) on retained earnings. Assume the shareholders' equity of the transacting company includes only common stock, paid-in capital-excess of par, and retained earnings at the time of each transaction. (Some transactions have two possible answers. Choose the best choice from the drop down menu. The first answer is provided as an example.) Transactions 1. Sale of common stock IN 2. Purchase of treasury stock at a cost less than the original issue price 3. Purchase of treasury stock at a cost greater than the original issue price 4. Declaration of a property dividend 5. Sale of treasury stock for more than cost 6. Sale of treasury stock for less than cost 7. Net income for the year 8. Declaration of a cash dividend 9. Payment of a previously declared cash dividend 10. Issuance of convertible bonds for cash 11. Declaration and distribution of a 5% stock dividend 12. Retirement of common stock at a cost less than the original issue price 13. Retirement of common stock at a cost greater than the original issue price 14. A stock split effected in the form of a stock dividend 15. A stock split in which the par value per share is reduced (not effected in the form of a stock dividend) 16. A net loss for the year
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 13PB: You are a consultant working with various companies that are considering incorporating and listing...
Related questions
Question
Transcribed Image Text:Indicate by letter whether each of the transactions listed below increases (I), decreases (D), or has no effect (N) on retained earnings.
Assume the shareholders' equity of the transacting company includes only common stock, paid-in capital–excess of par, and retained
earnings at the time of each transaction. (Some transactions have two possible answers. Choose the best choice from the drop
down menu. The first answer is provided as an example.)
Transactions
1. Sale of common stock
2. Purchase of treasury stock at a cost less than the original issue price
3. Purchase of treasury stock at a cost greater than the original issue price
4. Declaration of a property dividend
5. Sale of treasury stock for more than cost
6. Sale of treasury stock for less than cost
7. Net income for the year
8. Declaration of a cash dividend
9. Payment of a previously declared cash dividend
10. Issuance of convertible bonds for cash
11. Declaration and distribution of a 5% stock dividend
12. Retirement of common stock at a cost less than the original issue price
13. Retirement of common stock at a cost greater than the original issue price
14. A stock split effected in the form of a stock dividend
15. A stock split in which the par value per share is reduced (not effected in the form of a stock dividend)
16. A net loss for the year
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning