During 2014 Kenton Corporation Had the Following Transactions and Events

question 55

Short Answer

During 2014 Kenton Corporation had the following transactions and events:
1. Issued par value preferred stock for cash at par value
2. Issued par value common stock for cash at an amount greater than par value
3. Completed a 2 for 1 stock split in which the $10 par value common stock was changed to $5 par value stock
*4. Declared a small stock dividend when the market value was higher than the par value
5. Declared a cash dividend
*6. Issued the shares of common stock required by the stock dividend declaration in 4. above
7. Issued par value common stock for cash at par value
8. Paid the cash dividend
Instructions
Indicate the effect(s) of each of the foregoing items on the subdivisions of stockholders' equity. Present your answers in tabular form with the following columns. Use (I) for increase, (D) for decrease, and (NE) for no effect.

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Definitions:

ABC System

Activity-Based Costing is a method for assigning costs to products, services, or projects based on the activities that go into them and the resources consumed by these activities.

Behavioral Issues

Behavioral issues refer to patterns of behavior that are disruptive or inappropriate in specific settings, often impacting an individual's ability to function effectively in social or professional contexts.

Top Down Approach

A management strategy where decision-making starts from the higher levels of the organization and flows down to the lower levels.

Product Cost Systems

Systems used to accumulate and allocate costs involved in producing a product or offering a service, including direct materials, labor, and overhead.