Indicate the effect of each of the following transactions on total stockholders\

Question

Indicate the effect of each of the following transactions on total stockholders' equity by placing an "X" in the appropriate column Increase Decrease No Effect 1. Treasury stock is resold at more than cost. 2. Operating loss for the period. 3. Retirement of bonds payable at more than book value. 4. Declaration of a stock dividend . Acquisition of machinery for common stock. 6. Conversion of bonds payable into common stock. 7. Not declaring a dividend on 8. Declaration of cash dividend. 9. Payment of cash dividend. cumulative preferred stock

Explanation / Answer

Increase Decrease No Effect 1. Treasury stock is resold at more than cost. X 2. Operating loss for the period. X 3. Retirement of bonds payable at more than book value. X 4. Declaration of a stock dividend. X 5. Acquisition of machinery for common stock X 6. Conversion of bonds payable into common stock. X 7. Not declaring a dividend on cumulative preferred stock. X 8. Declaration of cash dividend. X 9. Payment of cash dividend. X

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