For the following event, write the journal entry and then choose the answer statement which properly demonstrates the effect on the financial statements.
XYZ Corp.’s board of directors declares a stock split.
| Assets | Liability | Retained Earnings | Shareholder's Equity | |
|---|---|---|---|---|
| A | Increase | Increase | ||
| B | Decrease | Increase | ||
| C | Increase | Decrease | Decrease | |
| D | Decrease | Decrease | Decrease | |
| E | No effect on financials | |||
| Click Here to View All Chapter 11 Problems at Once | View | ||
| 1 | Stock Dividends T/F | Easy | |
| 2 | Effect on Financial Statements: Cash Dividend | Moderate | |
| 3 | Effect on Financial Statements: Stock Dividend | Moderate | |
| 4 |
Effect on Financial Statements: Stock Split
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Moderate | |
| 5 | Stock and Dividends T/F | Moderate | |
| 6 | Comprehensive Stockholder's Equity | Hard |
| 1 | Shareholder's Equity | 5:12 | |
| 2 | Stock Classifications | 4:19 | |
| 3 | Issuance of Stock | 6:37 | |
| 4 | Treasury Stock | 11:11 | |
| 5 | Cash Dividends | 9:58 | |
| 6 | The Effect of Cash Dividends | 6:08 | |
| 7 | Stock Dividends | 13:48 |