Question

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.

		Item		Event		Classifications
1.		Par value per share		Stock split		Item decreasesItem is unchangedDirection of change cannot be determinedItem increases
2.		Total retained earnings		Stock dividend		Direction of change cannot be determinedItem increasesItem decreasesItem is unchanged
3.		Total stockholders’ equity		Prior period adjustment increases last year’s net income		Item is unchangedDirection of change cannot be determinedItem increasesItem decreases
4.		Earnings per common share		Restriction of retained Earnings		Item is unchangedItem increasesItem decreasesDirection of change cannot be determined
5.		Total retained earnings		Cash dividend		Item is unchangedItem decreasesDirection of change cannot be determinedItem increases
6.		Total paid-in capital		Stock dividend		Item decreasesDirection of change cannot be determinedItem is unchangedItem increases

Answer 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.

		Item		Event		Classifications
1.		Par value per share		Stock split		Item decreases
2.		Total retained earnings		Stock dividend		Item decreases
3.		Total stockholders’ equity		Prior period adjustment increases last year’s net income		Item increases
4.		Earnings per common share		Restriction of retained Earnings		Item is unchanged
5.		Total retained earnings		Cash dividend		Item decreases
6.		Total paid-in capital		Stock dividend		Item increases