5% preferred stock, $100 par value, 18,000 shares authorized; 8,000 shares issued and outstanding

$ 800,000

Common stock, $5 par value, 200,000 shares authorized; 50,000 shares issued and outstanding

250,000

Paid-in capital in excess of par valuepreferred stock

40,000

Paid-in capital in excess of par valuecommon stock

300,000

Retained earnings

656,000

Total stockholders' equity

The following transactions, among others, occurred during 2012: Apr. 1 Declared and issued a 100% stock dividend on all outstanding shares of common stock. The market value of the stock was $11 per share. Dec. 7 Declared and issued a 4% stock dividend on all outstanding shares of common stock. The market value of the stock was $14 per share. Dec. 20 Declared and paid (1) the annual cash dividend on the preferred stock and (2) a cash dividend of 80 cents per common share. (a) Use the financial statement effects template to indicate the effects of these separate transactions.

Use negative signs with answers, when appropriate.

	Balance Sheet
Transaction	Cash Asset	+	Noncash Assets	=	Liabilities	+	Contributed Capital	+	Earned Capital
Apr. 1	Answer		Answer		Answer		Answer		Answer
Dec. 7	Answer		Answer		Answer		Answer		Answer
Dec. 20	Answer		Answer		Answer		Answer		Answer

Income Statement
Revenue	-	Expenses	=	Net Income
Answer		Answer		Answer
Answer		Answer		Answer
Answer		Answer		Answer

(b) Compute retained earnings for 2012 assuming that the company reports 2012 net income of $253,000.