amheartfield
May 2, 2008, 08:44 PM
I have an assignment that I am having trouble with and would like a little help. I have attempted to answer the question. If someone could verify my answer I would appreciate it.
The purpose of the question is to show the affect each of the following have on net profit, retained earnings, and stockholder's equity. (0 = no change, - = decrease, + = increase)
..............................................Net Profit | Retained Earnings | Total Stockholder’s Equity
Stock Dividend declared & paid......0....................-.............................0
Merchandise purchased on credit....0....................0............................-
Marketable Sec. sold above cost.....+...................+............................+
A/R collected.................................0...................0............................0
Cash Dividend declared and paid....0....................-............................0
Treasury Stock purchased at cost....-....................-............................-
Treasury Stock sold above cost......+...................+............................+
Common Stock sold......................+...................+............................+
Fixed Asset sold below book...........-....................-.............................0
Bond converted into stock..............0...................+............................+
The purpose of the question is to show the affect each of the following have on net profit, retained earnings, and stockholder's equity. (0 = no change, - = decrease, + = increase)
..............................................Net Profit | Retained Earnings | Total Stockholder’s Equity
Stock Dividend declared & paid......0....................-.............................0
Merchandise purchased on credit....0....................0............................-
Marketable Sec. sold above cost.....+...................+............................+
A/R collected.................................0...................0............................0
Cash Dividend declared and paid....0....................-............................0
Treasury Stock purchased at cost....-....................-............................-
Treasury Stock sold above cost......+...................+............................+
Common Stock sold......................+...................+............................+
Fixed Asset sold below book...........-....................-.............................0
Bond converted into stock..............0...................+............................+





