(b) Compute retained earnings for 2012 assuming that the company reports 2012 net income of $253,000. E Save Answers Identifying and Analyzing Financial Statement Effects of Dividends The stockholders' equity of Kinney Company at December 31, 2011, is shown below. 5% preferred stock, $100 par value, l6,000 shares authorized; 7,000 shares issued and outstanding $ 700,000 Common stock, $5 parvalue, 360,000 shares authorized; 90,000 shares issued and outstanding 450,000 Paid-in capital in excess of par valuepreferred stock 40,000 Paidein capital in excess of par valueicommon stock 540,000 Retained earnings 656,000 Total stockholders' equity $2,386,000 The following transactions, among others, occurred during 2012: Apr. 1 Declared and issued a l00% 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 2% stock dividend on all outstanding shares of common stock. The market value ofthe 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 Contributed Earned Transatian Cash Asset + Nnncash Assets = Liahil {- Capital + Capital Apr'l o o 0 o 0 De\" 7 o o 0 n 0 Dec 20 HH Finish attempt Support