During 2010, Jester Corporation had the following transactions and events.

Declared a cash dividend.

Issued par value common stock for cash at par value.

Completed a 2-for-1 stock split in which $10 par value stock was changed to $5 par value stock.

Declared a small stock dividend when the market value was higher than par value.

Made a prior period adjustment for overstatement of net income.

Issued the shares of common stock required by the stock dividend declaration in item no. 4 above.

Paid the cash dividend in item no. 1 above.

Issued par value common stock for cash above par value.


Indicate the effect(s) of each of the foregoing items on the subdivisions of stockholders’ equity. Present your answer in tabular form with the following columns. Use (I) for increase, (D) for decrease, and (NE) for no effect. Item no. 1 is given as an example.

Item Capital Stock / Additional Retained / earnings

1. NE NE D