3.Select the effect (a, b, or c) that each transaction listed in 1 through 9 would most likely cause on the debt/equity ratio. Effects a.Decrease in debt/equity ratio b.Increase in debt/equity ratio c.Does not change debt/equity ratio 1. Issued debt to finance the purchase of property 2.2. Issued common stock to finance the purchase of property 3.Used money resulting from profits to finance the purchase of property 4.4. Declared dividends to shareholders 5.5. Paid the previously declared dividends 6.6. Skipped dividends on cumulative preferred stock 7.7. Declared and paid a 10% stock dividend 8.8. Declared and paid a 200% stock dividend 9.9. Distributed a two-for-one stock split 4.Indicate the effect of each of the following transactions (1 through 6) on totalshareholders’ equity by selecting the letter of the effect (a, b, and c) and placing it in the space provided. Accounting Effects a.Decrease in total shareholders’ equity b.Increase in total shareholders’ equity c.Does not change total shareholders’ equity 1. Treasury stock is resold at more than cost 2. Operating loss for the period 3. Declaration of a stock dividend 4. Acquisition of machinery for common stock 5. Declaration of cash dividend 6. Payment of cash dividend previously recorded

3.Select the effect (a, b, or c) that each transaction listed in 1 through 9 would most likely cause on the debt/equity ratio. Effects a.Decrease in debt/equity ratio ...

3.Select the effect (a, b, or
c) that each transaction listed in 1 through 9 would most likely cause on the debt/equity ratio.

		Effects
		a.Decrease in debt/equity ratio
		b.Increase in debt/equity ratio
		c.Does not change debt/equity ratio

	1. Issued debt to finance the purchase of property
	2.2. Issued common stock to finance the purchase of property
	3.Used money resulting from profits to finance the purchase of property
	4.4. Declared dividends to shareholders
	5.5. Paid the previously declared dividends
	6.6. Skipped dividends on cumulative preferred stock
	7.7. Declared and paid a 10% stock dividend
	8.8. Declared and paid a 200% stock dividend
	9.9. Distributed a two-for-one stock split

4.Indicate the effect of each of the following transactions (1
through
6) on totalshareholders’ equity by selecting the letter of the effect (a,
b, and
c) and placing it in the space provided.

Accounting Effects

a.Decrease in total shareholders’ equity

b.Increase in total shareholders’ equity

c.Does not change total shareholders’ equity

	1. Treasury stock is resold at more than cost
	2. Operating loss for the period
	3. Declaration of a stock dividend
	4. Acquisition of machinery for common stock
	5. Declaration of cash dividend
	6. Payment of cash dividend previously recorded

May 15, 2022

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3.Select the effect (a, b, or c) that each transaction listed in 1 through 9 would most likely cause on the debt/equity ratio. Effects a.Decrease in debt/equity ratio ...

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