The following captions are sub–totals appearing in the shareholders’ equity section of the balance sheet for Hudson Day Corporation:
|
a. |
Total share capital |
|
b. |
Total retained earnings |
Required: For each event listed below, indicate, in the format provided, whether the amount of each subtotal is increased (
) or decreased (
). Indicate with an ‘x’ if there is no change to a particular
subtotal. Consider each event to be unrelated to the others.
|
Total share capital |
Retained earnings |
||
|
1. |
Company is incorporated. |
X |
X |
|
2. |
Issued shares with a stated value of $1. |
_______________ |
_______________ |
|
3. |
Split the common shares 2 for 1. |
_______________ |
_______________ |
|
4. |
Recorded net income for the year. |
_______________ |
_______________ |
|
5. |
Reacquired common shares previously outstanding. |
_______________ |
_______________ |
|
6. |
Issued a share dividend. |
_______________ |
_______________ |
|
7. |
Paid a cash dividend. |
_______________ |
_______________ |
|
8. |
(Appendix 1) Declared a share dividend. |
_______________ |
_______________ |
|
9. |
(Appendix 2) Created a restriction on retained earnings. |
_______________ |
_______________ |
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