eBook Dividends and Stock Splits On January 1, 2017, Svenberg Inc.'s Stockholders' Equity category appeared as follows: Preferred stock, $80 par value, 8%, 1,000 shares Issued and outstanding $80,000 Common stock, $10 par value, 10,000 shares Issued and outstanding 100,000 Additional paid-in capital-Preferred 60,000 Additional pald-in capital-Common 225,000 Total contributed capital $465,000 Retained earnings 1,980,000 Total stockholders' equity $2,445,000 The preferred stock is noncumulative and nonparticipating. During 2017, the following transactions occurred: a. On March 1, declared a cash dividend of $6,400 on preferred stock. Paid the dividend on April 1. b. On June 1, declared an 8% stock dividend on common stock. The current market price of the common stock was $26. c. On September 1, declared a cash dividend of $0.70 per share on the common stock; paid the dividend on October 1. d. On December 1, issued a 3-for-1 stock split of common stock, when the stock was seling for $30 per share. Required: 1. Explain each transaction's effect on the stockholders' equity accounts and the total stockholders' equity, ow.com/ilrn/takeAssignment/takeAssighme eBook Effect on total Transaction stockholders' equity on March 1, declared a cash dividend of $5,400 on preferred stock Pald the dividend on April 1 On June 1, declared an 5% stock dividend on common stock. The current market price of the common stock was $26 The stock was issued on July 1 on September 1, declared a cash dividend of $0.70 per share on the common stock Pald the dividend on October 1 On December 1, issued a 3-for-1 stock split of common stock, when the stock was selling for $30 per share 2. Develop the stockholders' Equity category of the balance sheet. Assume that the net income for the year was $720,000. Do not round interim Svenberg Inc. Partia Balance sheet December 31, 2017 Stockholders' equity Total contributed capital Total stockholders' equity 3. Which of the following statements incorrect