A Corporation Had Several Transactions Affecting Its Stockholders' Equity Accounts

question 65

Essay

A corporation had several transactions affecting its stockholders' equity accounts during the year.The transactions are presented in chronological order.In the space provided,indicate the impact on the equity accounts shown by placing the respective dollar amounts along with a plus sign (+)for an increase in the account balance,minus sign (-)for a decrease,or N/A if there is no impact on the account balance.
$\begin{array}{|l|l|l|l|}\hline&&\text { Paid-in }\\\hline &\text { Comunon } & \text { Capital in } & \text { Retained } \\\hline \text { Transactions: }&\text { Stack } & \text { Excess of Par } & \text { Earuings } \\\hline \text { Received authorization to issue 10,000 shares of \$ 2 par common stock }\\\hline \text { Issued 500 shares of common stock for \$ 15 per share }\\\hline \text {Issued 400 shares of common stock for \$ 16 per share }\\\hline \text { Declared and paid a 10 \% stock dividend when the market price of the }\\ \text { common stock was \$ 17 per share }\\\hline \text { Declared and paid a cash dividend of \$ 0.50 per share }\\\hline \text { Issued additional shares in a 2-for-1 stock split }\\\hline\end{array}$

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Definitions:

Total Manufacturing Cost

The aggregate of all expenses related to the production of goods, including materials, labor, and overhead.

Work in Process

Inventory that is in the production process but is not yet complete.

Overapplied Overhead

A situation where the overhead costs allocated for products or services exceed the actual overhead costs incurred.

Manufacturing Overhead

Refers to all manufacturing costs excluding the direct costs of labor and materials, such as rent, utilities, and equipment depreciation.