Analyzing and Identifying Financial Statement Effects of Dividends Chaney Company has outstanding 30,000 shares of $10 par value common stock. It also has $405,000 of retained earnings. Near the current year-end, the company declares and pays a cash dividend of $2.10 per share and declares and issues a 5% stock dividend. The market price of the stock at the declaration date is $40 per share. a. Using the financial statement effects template, illustrate the effects of these two separate dividends. Use negative signs with answers when appropriate. When applicable, enter total amount for contributed capital. Balance Sheet Income Statement Noncash Contrib. Earned Contra Transaction Cash Asset + Asset Liabilities Capital Capital -Equity Revenues Expenses = Net Income Declared and paid cash dividend Declared and issued stock dividend = + b. Prepare the journal entries for these two separate dividend transactions. General Journal Description Debit Credit To record cash dividend Common stock To record stock dividend