Circle whether each of the following events/transactions will (I)ncrease, (D)ecrease, or have (No) effect on stockholders’ equity.
STOCKHOLDERS’ EQUITY
(Circle the answer)
a. Issue preferred stock at par value. (___/ D / No)
b. Issue common stock at more than par value. (___/ D / No)
c. Purchase treasury stock. (I / ___/ No)
d. During the accounting period, the market price of the company’s common stock increases. (I / D / ___)
e. Declare and issue a cash dividend. (I / ___/ No)
f. Declare and issue a stock dividend. (I / D / ___)
g. Record net income for the accounting period. (___/ D / No)
h. Purchase inventory on account. (I / D / ___)
i. Issue bonds payable at a premium. (I / D / ___)
j. Correct an error that understated depreciation expense in the previous accounting period (I / ___ / No)