Identifying and Analyzing Financial Statement Effects of Dividends The stockholders' equity of Hammel Company at December 31, 2016, is shown below 5% preferred stock, $100 par value, 10,000 shares authorized; 6,000 shares issued and $600,000 outstanding Common stock, $5 par value, 200,000 shares authorized; 70,000 shares issued and outstanding Paid-in capital in excess of par value-preferred stock Paid-in capital in excess of par value-common stock Retained earnings Total stockholders' equity 350,000 50,000 400,000 747,000 $2,147,000 The following transactions, among others, occurred during 2017: Apr. 1 Declared and issued a 100% stock dividend on all outstanding shares of common stock. The market value of the stock was $14 per share. Dec. 7 Declared and issued a 4% stock dividend on all outstanding shares of common stock. The market value of the stock was $17 per share. Dec. 20 Declared and paid (1) the annual cash dividend on the preferred stock and (2) a cash dividend of 90 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 Noncash Contributed Earned Transaction Cash AssetAssetsL = Liabilities + Capital Apr. 1 Dec. 7 Dec. 20 Income Statement Net Revenue Expenses - Income (b) Compute retained earnings for 2017 assuming that the company reports 2017 net income of $523,000