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, 18,000 shares authorized; 8,000 shares issued and outstanding	$ 800,000
Common stock, $5 par value, 200,000 shares authorized; 50,000 shares issued and outstanding	250,000
Paid-in capital in excess of par valuepreferred stock	40,000
Paid-in capital in excess of par valuecommon stock	300,000
Retained earnings	656,000
Total stockholders' equity	$2,046,000

The following transactions, among others, occurred during 2012:

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 4% 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) Use the financial statement effects template to indicate the effects of these separate transactions.

Apr. 1
Dec. 7
Dec. 20

(b) Compute retained earnings for 2012 assuming that the company reports 2012 net income of $253,000.