Part 2) Application 1) Match each item/event pair below with the indicated change in the item. An individual classification may be used more than once, or not at all. For each dividend, assume that both declaration and payment or distribution has occurred. Classifications A. Item increases B. Item decreases C. Item is unchanged D. Direction of change cannot be determined Item 4. 1. 2. 3. Total retained earnings Total shareholders' equity 5. Earnings per common share Total retained earnings Number of common shares issued Book value per share Legal capital per common share 7. 8. Total retained earnings 9. Total contributed capital 10. Legal capital per common share Event Stock dividend Cash dividend Stock split Prior period adjustment increases last year's net income Restriction of retained earnings Change in accounting principle Stock dividend Cash dividend Stock dividend Stock dividend [10]

Part 2) Application 1) Match each item/event pair below with the indicated change in the item. An individual classification may be used more than once, or not at all. For each dividend, assume that both declaration and payment or distribution has occurred