Analyzing and Identifying Financial Statement Effects of Dividends The stockholders' equity of Kinney Company at December 31, 2021, is shown below: 5% preferred stock, $100 par value, 10,000 shares authorized; Shares issued and outstanding (1) $350,000 Common stock, $5 par value, 200,000 shares authorized; Shares issued and outstanding (2) 225,000 Paid-in capital in excess of par value-preferred stock 36,000 Paid-in capital in excess of par value-common stock 270,000 Retained earnings 590,400 Total stockholders' equity $1,471,400 (1) 4,900 shares at $100 par value. (2) 63,000 shares at $5 par value. The following transactions, among others, occurred during 2022. 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 3% 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. Prepare the journal entries for these transactions. Date Apr. 1 Account Common stock Additional paid-in capital To record 100% stock dividend. Debit Credit 11,250 0 0 2,475,000 x Dec. 7 Additional paid-in capital 0 0 Common stock 0 0 Cash 0 0 To record 3% stock dividend. Dec. 20 Retained earnings 0 0 Common stock 0 0 To record cash dividend. b. Post the journal entries to the related T-accounts. Date Apr. 1 Account Common stock Additional paid-in capital To record 100% stock dividend. Debit Credit 11,250 0 0 2,475,000 x Dec. 7 Additional paid-in capital 0 0 Common stock 0 0 Cash 0 0 To record 3% stock dividend. Dec. 20 Retained earnings 0 0 Common stock 0 0 To record cash dividend. b. Post the journal entries to the related T-accounts. Note: Enter your answers, in transaction order, in the first open field of the appropriate column in each account. Cash 0 0 0 0 Additional paid-in capital 0 0 0 0 c. Prepare a 2022 retained earnings reconciliation assuming that the company reports 2022 net income of $227,700. Note: Use negative signs with your answers, when appropriate. Kinney Company Statement of Retained Earnings For the Year Ended Dec. 31 $ Retained earnings, December 31, 2021 Net income 590,400 227,700 Cash dividends declared (530,000) x Retained earnings, December 31, 2022 $ 530,000 Check Common stock 0 Retained earnings 0 0 0 0 0 0 0 0 0