Question 5: E15.11B (L0 3,4) (Equity Items on the Balance Sheet) The following are selected transactions that may affect stockholders’ equity. 1. Paid the cash dividend declared in a prior year. 2. Recorded a retained earnings appropriation. 3. Recorded accrued interest earned on a note receivable from a major shareholder. 4. Purchased treasury stock. (The company uses the cost method.) 5. Recorded salary expense accrual. 6. Declared a cash dividend on preferred stock. 7. Declared and distributed a 5% stock dividend. 8. Issued $1 par value common stock (current market price of $75 per share) in exchange for land. Instructions: In the table below, indicate the effect each of the eight transactions has on the financial statement elements listed. Indicate: Increase, Decrease, or No Effect in each box below.

Lavage rapide is a canadian company that owns and operates a large automatic car wash facility near montreal. the following table provides data concerning the company’s costs: fixed cost per month cost per car washed cleaning supplies $ 0.70 electricity $ 1,400 $ 0.07 maintenance $ 0.15 wages and salaries $ 4,900 $ 0.30 depreciation $ 8,300 rent $ 1,900 administrative expenses $ 1,400 $ 0.03 for example, electricity costs are $1,400 per month plus $0.07 per car washed. the company expects to wash 8,000 cars in august and to collect an average of $6.50 per car washed. the actual operating results for august appear below. lavage rapide income statement for the month ended august 31 actual cars washed 8,100 revenue $ 54,100 expenses: cleaning supplies 6,100 electricity 1,930 maintenance 1,440 wages and salaries 7,660 depreciation 8,300 rent 2,100 administrative expenses 1,540 total expense 29,070 net operating income $ 25,030 required: calculate the company's revenue and spending variances for august.

During the current year, luis university received a $50,000 gift from an alumna who specified that it must be used to pay travel costs for faculty to attend health care conferences in foreign countries. during the year the university spent $8,000 to support travel to a health care conference in italy. the $8,000 disbursement will cause a net decrease in which class of net assets?

Petra contracted to paint bret’s house for $2,000. after beginning the job, petra realizes that the house is really quite big, and she’s not going to make enough profit, so she tells bret she wants another $500 to finish the job. bret doesn’t want to pay more, but he’s afraid that if she walks off the job, he’ll have trouble finding someone else to finish it, so he agrees. is bret legally obligated to pay the extra $500?