Evaluate the following types of transactions, and identify the impact increase (A), decrease (V), or no change (N/C)) on
Posted: Wed Apr 27, 2022 11:00 am
Evaluate the following types of transactions, and identify the impact increase (A), decrease (V), or no change (N/C)) on total equity, common or preferred stock, additional paid-in capital, treasury stock, and retained earnings. The first transaction type is done as an example.
Total Equity Common Stock/ Preferred Stock Additional Paid-in Capital Treasury Stock Retained Earnings Issue common stock at par NC NC NC Issue common stock at > par Issue preferred stock at par Issue preferred stock at par Buy treasury stock (cost method) Resell treasury stock > cost (cost method) Resell treasury stock <cost (cost method)
9 Resell treasury stock > cost (cost method) 10 Resell treasury stock <cost (cost method) 11 Declare cash dividend 12 Pay previously declared cash dividend 13 Declare and issue large stock dividend 14 Declare and issue small stock dividend (fair value > par) 15 Declare and issue stock split
Total Equity Common Stock/ Preferred Stock Additional Paid-in Capital Treasury Stock Retained Earnings Issue common stock at par NC NC NC Issue common stock at > par Issue preferred stock at par Issue preferred stock at par Buy treasury stock (cost method) Resell treasury stock > cost (cost method) Resell treasury stock <cost (cost method)
9 Resell treasury stock > cost (cost method) 10 Resell treasury stock <cost (cost method) 11 Declare cash dividend 12 Pay previously declared cash dividend 13 Declare and issue large stock dividend 14 Declare and issue small stock dividend (fair value > par) 15 Declare and issue stock split