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, − to indicate a decrease, and 0 to indicate no effect.

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. Retained Total Stockholders' Net Profit Earnings Equity