The following problems require you to indicate the financial statement effects of equity financing transactions (ignore income tax effects). Make sure that, within each major classification, you indicate the subclassification under which the account will appear.

1. Effects of equity transactions-Property Dividend. Soup Distributors declares a dividend on December 1, 2003, payable on January 7, 2004, to shareholders of record on December 20, 2003. The dividend payment is in shares of an investment in Noodle Co. that Soup is holding as a short-term investment. As of December 1, 2003, the investment in Noodle Co. had a fair market value of $65,800. The original cost of the investment was $70,000; however, the Noodle Co. stock had been marked to matter and is recorded at $68,500.