Kettle Creek Corporation had the following transactions and events: 

1. Declared a cash dividend. 

2. Issued common shares for cash. 

3. Completed a 2-for-1 stock split of the common shares. 

4. Declared a stock dividend on the common shares. 

5. Distributed the stock dividend declared in item 4. 

6. Made a correction of a prior period error for an understatement of profit. 

7. Repurchased common shares for less than their initial issue price. 

8. Comprehensive income for the year included profit and a gain reported as other comprehensive income. 

Instructions 

Indicate the effect(s) of each of the above items on the subdivisions of shareholders’ equity. Present your answer in tabular form with the following columns. Use “I” for increase, “D” for decrease, and “NE” for no effect. Item 1 is given as an example.

 

Transcribed Image Text:

Contributed Capital Item Share Capital Additional 1. NE NE Accumulated Other Retained Earnings Comprehensive Income D NE Total Shareholders' Equity D