1. Following is the shareholders' equity section of Morgan Supplies on a day its common stock is trading at $77 per share. Common stock ($2 par value, 30,000 shares issued and outstanding) $ 60,000 Additional paid-in capital on common stock 1,200,000 Retained earnings 3,000,000 Required: a. Use the financial statement template below to show the financial statement effects of the following dividend events. (Assume that the events are independent.) (1) Cash dividend declaration and payment of $1 per share (2) Property dividend declaration and payment of shares representing a short-term investment in Screen Products, Ltd., with a fair value of $15,000 (3) 10 percent stock dividend (4) 100 percent stock dividend (5) 3-for-1 stock split (6) 1-for-2 reverse stock split Shareholders' Equity Entry Assets Liabilities cc + aoci + RE 2 3 Journal entry (optional): b. Which events changed the book value of common equity? c. Under what conditions will these events lead to future increases and decreases in ROE