During 2014, Quest Corporation had the following transactions and events:
1. Issued preferred shares for cash.
2. Issued common shares for cash.
3. Completed a 2-for-1 stock split of the common shares.
4. Declared a stock dividend when the market value was higher than the issue price.
5. Declared a cash dividend.
6. Issued the common shares required by the stock dividend declaration in 4 above.
Instructions
Indicate the effect(s) of each of the foregoing items on the subdivisions of shareholders' equity. Present your answers in tabular form with the following columns. Use (I) for increase, (D) for decrease, and (NE) for no effect.

Question

Quizplus · Accepted Answer

The Answer of During 2014, Quest Corporation had the following transactions and events:
1. Issued preferred shares for cash.
2. Issued common shares for cash.
3. Completed a 2-for-1 stock split of the common shares.
4. Declared a stock dividend when the market value was higher than the issue price.
5. Declared a cash dividend.
6. Issued the common shares required by the stock dividend declaration in 4 above.
Instructions
Indicate the effect(s) of each of the foregoing items on the subdivisions of shareholders' equity. Present your answers in tabular form with the following columns. Use (I) for increase, (D) for decrease, and (NE) for no effect.

During 2014, Quest Corporation Had the Following Transactions and Events