Transactions affect various financial statement amounts.
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Net Profit |
Retained |
Total |
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a. A stock dividend is declared and paid. |
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b. Merchandise is purchased on credit. |
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c. Marketable securities are sold above cost. |
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d. Accounts receivable are collected. |
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e. A cash dividend is declared and paid. |
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f. Treasury stock is purchased and recorded at cost. |
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g. Treasury stock is sold above cost. |
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h. Common stock is sold. |
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i. A fixed asset is sold for less than book value. |
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j. Bonds are converted into common stock. |
Required
Indicate the effects of the previous transactions on each of the following: net profit, retained earnings, total stockholders’ equity. Use + to indicate an increase, to indicate a decrease, and 0 to indicate no effect.