EX 13-21 Effect of cash dividend and stock split

Indicate whether the following actions would (+) increase, (–) decrease, or (0) not affect Indigo Inc.’s total assets, liabilities, and stockholders’ equity:


Assets Liabilities
Stockholders’
Equity
(1) Authorizing and issuing stock certifi cates
in a stock split _____________ _____________ _____________
(2) Declaring a stock dividend _____________ _____________ _____________
(3) Issuing stock certifi cates for the stock
 dividend declared in (2) _____________ _____________ _____________
(4) Declaring a cash dividend _____________ _____________ _____________
(5) Paying the cash dividend declared in (4) _____________ _____________ _____________




Answer:

Stockholders’
 Assets Liabilities Equity
(1) Authorizing and issuing stock
 certificates in a stock split 0 0 0
(2) Declaring a stock dividend 0 0 0
(3) Issuing stock certificates for
 the stock dividend declared
 in (2) 0 0 0
(4) Declaring a cash dividend 0 + –
(5) Paying the cash dividend
 declared in (4) – – 0 

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