Problem #1 Effects of Transactions Indicate the effects of each of the following transactions on Assets, Liabilities, Share Capital and Retained Earnings. Use + for increase, - for decrease, and 0 for no effect. Share Retained Assets Liabilities Capital Earnings 1. Declaration of cash dividends 2. Payment of cash dividends 3. Declaration of share dividends 4. Issuance of share dividends 5. A share split 6. Cash purchase of treasury stock 7. Sale of treasury stock below cost Problem #2 Effect of Cash Dividend Indicate whether the following actions would (+) increase, (-) decrease, or (0) not affect Bernal Inc.'s total assets, liabilities and shareholders' equity: Shareholders' Assets Liabilities Equity 1. Declaring a cash dividend 2. Paying the cash dividend declared in no. 1 3. Declaring a share dividend Issuing share certificates for the share dividend declared in no. 3 4. 5. Authorizing and issuing share certificates in a share split

Problem #1 Effects of Transactions Indicate the effects of each of the following transactions on Assets, Liabilities, Share Capital and Retained Earnings. Use + for increase, - for decrease, and 0 for no effect. Share Retained Assets Liabilities Capital Earnings 1. Declaration of cash dividends 2. Payment of cash dividends 3. Declaration of share dividends 4. Issuance of share dividends 5. A share split 6. Cash purchase of treasury stock 7. Sale of treasury stock below cost Problem #2 Effect of Cash Dividend Indicate whether the following actions would (+) increase, (-) decrease, or (0) not affect Bernal Inc.'s total assets, liabilities and shareholders' equity: Shareholders' Assets Liabilities Equity 1. Declaring a cash dividend 2. Paying the cash dividend declared in no. 1 3. Declaring a share dividend Issuing share certificates for the share dividend declared in no. 3 4. 5. Authorizing and issuing share certificates in a share split

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Problem #1
Effects of Transactions
Indicate the effects of each of the following transactions on Assets, Liabilities, Share
Capital and Retained Earnings. Use + for increase, - for decrease, and 0 for no effect.
Share
Retained
Assets
Liabilities
Сapital
Earnings
1.
Declaration of cash dividends
2.
Payment of cash dividends
3.
Declaration of share dividends
4.
Issuance of share dividends
5.
A share split
6.
Cash purchase of treasury stock
7.
Sale of tre
stock below cost
Problem #2
Effect of Cash Dividend
Indicate whether the following actions would (+) increase, (-) decrease, or (0) not affect
Bernal Inc.'s total assets, liabilities and shareholders' equity:
Shareholders'
Assets
Liabilities
Equity
1.
Declaring a cash dividend
Paying the cash dividend
declared in no. 1
2.
3.
Declaring a share dividend
4,
Issuing share certificates for the
share dividend declared in no. 3
5.
Authorizing and issuing share
certificates in a share split

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