Indicate whether the following actions would (+) increase, (-) decrease, or (0) not affectIndigo Inc.'s total assets, liabilities, and stockholders’ equity:Stockholders'LiabilitiesAssetsEquity(1) Authorizing and issuing stock certificatesin a stock splitDeclaring a stock dividendIssuing stock certificates for the stock(2)(3)dividend declared in (2)(4) Declaring a cash dividend(5) Paying the cash dividend declared in (4)

Answered: Image /qna-images/answer/818e6763-2c3f-4d42-b644-9492f795df19.jpg

Answered: Indicate whether the following actions…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter12: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 12E

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Similar questions

Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a stock dividend resides with shareholders. C. It does not affect total equity but transfers amounts between equity components. D. It creates a cash reserve for shareholders.
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
Which of the following affects the total Shareholders’ Equity? a. Declaration of a scrip dividend b. Declaration of share split c. Appropriation of retained earnings d. Retirement of treasury shares
When a stock dividend is declared, which of the following accounts is credited? O a. Common Sock O b. Dividend Payable O c. Stock Dividends Distributable O d. Retained Earnings
Effect of Cash Dividend and Stock Split Indicate whether the following actions would increase, decrease, or not affect Indigo Inc.'s total assets, liabilities, and stockholders' equity: Stockholders' Assets Liabilities Equity 1. Authorizing and issuing stock certificates in a stock split 2. Declaring a stock dividend 3. Issuing stock certificates for the stock dividend declared in (2) 4. Declaring a cash dividend 5. Paying the cash dividend declared in (4)
Indicate whether each of the following transactions would increase, decrease or have no effect on total assets, total liabilities, total shareholders'equity, and the number of shares: Shareholders" Number of Assets Liabilities Transaction Equity Shares Declared cash dividend. Increase Paid cash dividend declared in part (a). Decrease No Effect Declared stock dividend. Distributed stock dividend declared in part (c). Split stock 2-for-1.
Which of the following statements about stock dividendsis true?a. Stock dividends are reported on the income statement.b. Stock dividends increase total stockholders’ equity.c. Stock dividends decrease total stockholders’ equity.d. None of the above
Indicate whether each of the following transactions increases (+), decreases (−), or has no effect (NE) on total assets, total liabilities, and total stockholders’ equity. The first transaction is completed as an example. Transaction TotalAssets TotalLiabilities TotalStockholders’ Equity Issue common stock + NE + Issue preferred stock Purchase treasury stock Resell treasury stock
When a company issues a stock dividend which of the following would be affected? a. Earnings per share. b. Total assets. c. Total liabilities. d. Total stockholders’ equity.

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