During 2012, Margan Corporation had the following transactions and events. 1. De

Question

During 2012, Margan Corporation had the following transactions and events. 1. Declared a cash dividend. 2. Issued par value common stock for cash at par value. 3. Completed a 2-for-1 stock split in which $10 par value stock was changed to $5 par value stock. 4. Declared a small stock dividend when the market value was higher than par value. 5. Made a prior period adjustment for overstatement of net income. 6. Issued the shares of common stock required by the stock dividend declaration in item no. 4 above. 7. Paid the cash dividend in item no. 1 above. 8. 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

Explanation / Answer

1. Declared Cash dividend NE D
2. Issued par value common stock I NE
3. 2 for 1 stcok split NE NE
4. Declared Stock dividend NE D
5. Prior period adjustment NE D
6. Issued common stock dividend I NE
7. Issued cash dividend NE NE
8. Issued stock above par value I I

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