1. Analyze the following transactions and indicate the effect on each of the following: total assets, total paid-in capital, total retained earnings, and total stockholders equity. (Make sure to state the effect in terms of increase or decrease with dollar amount, if there is no effect, please state that).

STOCKHOLDERS EQUITY

PAID-IN CAPITAL

Preferred Stock - $50 par value; 6%, cumulative 2000 shares authorized, 1000 shares

Issued and outstanding $50,000

Paid in capital in Excess of Par Preferred 5,000

Common Stock- $1 par value; 10,000,000 shares authorized, 2,000,000

shares issued and outstanding 2,000,000

Paid in capital in Excess of Par Common 19,000,000

Total Paid-in Capital $21,055,000

Retained Earnings 9,000,000

Total Stockholders Equity $30,055,000

Transaction: (each transaction is independent)

a. The corporation declares and issues a 5% stock dividend on the common stock when the fair value of the stock is $12 per share.

b. The corporation declares and pays a regular cash dividend on the preferred stock.

c. The board of directors for the corporation announce a 2 for 1 stock split and issues new shares.

d. The corporation declares and issues a 30% stock dividend on the common stock when

the market price of the stock is $16 per share.