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, 28,000 shares authorized; 13,000 shares issued and outstanding	$1,300,000
Common stock, $5 par value, 320,000 shares authorized; 80,000 shares issued and outstanding	400,000
Paid-in capital in excess of par valuepreferred stock	40,000
Paid-in capital in excess of par valuecommon stock	480,000
Retained earnings	656,000
Total stockholders' equity	$2,876,000

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.

	Balance Sheet
Transaction	Cash Asset	+	Noncash Assets	=	Liabilities	+	Contributed Capital	+	Earned Capital
Apr. 1	Answer		Answer		Answer		Answer		Answer
Dec. 7	Answer		Answer		Answer		Answer		Answer
Dec. 20	Answer		Answer		Answer		Answer		Answer

Income Statement
Revenue	-	Expenses	=	Net Income
Answer		Answer		Answer
Answer		Answer		Answer
Answer		Answer		Answer

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