Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

Exercise 16

The basic accounting equation for a corporation is Assets = Liabilities + Stockholder's Equity. Stockholder's equity is further divided into two categories: paid in capital and re­tained earnings. What are the major transactions and other financial activities that impact the amount of paid in capital of a corporation? Identify for each major type of transaction or activity whether it increases or decreases the amount of paid in capital.