Reference no: EM13481772

Margan Corporation had the following transactions and events. 1. Declared a cash dividend. 2. Issued par value common stock for cash at par value. 3. Completed a 2-for-1 stock split in which $10 par value stock was changed to $5 par value stock. 4. Declared a small stock dividend when the market value was higher than par value. 5. Made a prior period adjustment for overstatement of net income. 6. Issued the shares of common stock required by the stock dividend declaration in item no. 4 above. 7. Paid the cash dividend in item no. 1 above. 8. Issued par value common stock for cash above par value. Indicate the effect of each of the foregoing items on the subdivisions of stockholders' equity. Paid-in Capital Capital Stock Additional Retained Earnings 1. No Effect No Effect Decrease 2. 3. 4. 5. 6. 7. 8.