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:


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



Answer:

Stockholders’
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