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Home > Education > Homework Help > Finance & Accounting   »   Transactions that affect Net Profit, Retained Earnings and Stockholder's Equity

 
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Old May 2, 2008, 07:44 PM
amheartfield
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Transactions that affect Net Profit, Retained Earnings and Stockholder's Equity

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...................+.......... ..................+

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