The following are selected transactions that may affect stockholders equity.
1. Paid the cash declared in a prior year.
2. Recorded a retained earnings appropriation.
3. Recorded accrued interest earned on a note receivable from a major shareholder.
4. Purchased treasury stock. (The company uses the cost method.)
5. Recorded salary expense accrual.
6. Declared a cash on preferred stock.
7. Declared and distributed a 5% stock Issued $1 (current market price of $75 per share) in exchange for land.
Instructions
In the table below, indicate the effect each of the eight transactions has on the financial statement elements listed. Use the following code:
I = Increase D = Decrease NE = Noeffect
