In the Chart Below, Assign the Directional Effect (I =

question 64

Essay

In the chart below, assign the directional effect (I = increase, D = decrease, or NE = no effect) of each of the following four transactions on the components of the book value of common shareholders' equity.
a. Treasury stock acquired (company uses the cost method).
b. Treasury stock in transaction a. reissued at an amount greater than original acquisition
price.
c. Treasury stock in transaction a. reissued at an amount less than the original acquisition
price.
d. Restricted stock issued (grant date).
$\begin{array}{c}\begin{array}{|l|}\hline \text {Item}\\\\\hline \text {a.}\\\hline \text {b.}\\\hline \text {c.}\\\hline \text {d} \\\hline \end{array}\begin{array}{l|}\hline \text {Common Stock}\\\\\hline\\\hline \\\hline \\\hline\\\hline \end{array}\begin{array}{l|}\hline \text {Additional Paid-In}\\ \text {Capital}\\\hline\\\hline\\\hline\\\hline\\\hline\end{array}\begin{array}{l|}\hline \text {Deferred}\\ \text {Compensation}\\\hline\\\hline\\\hline\\\hline\\\hline\end{array}\begin{array}{l|}\hline \text {Retained}\\\text {Earrings}\\\hline\\\hline \\\hline\\\hline\\\hline\end{array}\begin{array}{l|}\hline \text {Treasury Stock}\\ \text { at Cost}\\\hline\\\hline\\\hline\\\hline\\\hline\end{array}\begin{array}{l|}\hline \text {Total Common}\\ \text { Shareholders' Equity}\\\hline\\\hline\\\hline\\\hline\\\hline\end{array}\end{array}$

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