Analyzing and Identifying Financial Statement Effects of Dividends Chaney Company has outstanding 25,000 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 $1.90 per share and declares and issues a 4% stock dividend. The market price of the stock at the declaration date is $35 per share. Income 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 Noncash Contrib. Earned Contra Transaction Cash Asset Asset - Liabilities Capital Capital -Equity Declared and paid cash dividend (875.000) 0 0 (87.500) 0 Declared and issued stock dividend 0 - O- 0 0 0 0 Revenues 0 Expl 0 0 b. Prepare the journal entries for these two separate dividend transactions. General Journal Description Debit Credit Retained earnings 47.500 Cash 0 47.500 To record cash dividend Common stock 47,500 0 Common stock 0 Cash 0 47,500 To record stock dividend 0 . c. Post the journal entries from b to the related T-accounts. Cash Common Stock 0 0 Additional Paid in Capital 0 0 0 Retained Earnings 0 0 0 0 Check