Transactions affect various financial statement amounts.

Required
Indicate the effects of the previous transactions on each of the following: net profit, retained earnings, total stockholders€™ equity. Use + to indicate an increase, ˆ’ to indicate a decrease, and 0 to indicate noeffect.

Transcribed Image Text:

Total Retained Stckholders' Earnings Net Profit Equity a. A stock dividend is declared and paid. b. Merchandise is purchased on credit. c. Marketable securities are sold above cost d. Accounts receivable are collected e. A cash dividend is declared and paid. f Treasury stock is purchased and recorded at cost g. Treasury stock is sold above cost. h. Common stock is sold. i. A fixed asset is sold for less than book value j. Bonds are converted into common stock.