Question 8 Partially correct Mark 32.00 out of 55.00 P Flag question Identifying and Analyzing Financial Statement Effects of Dividends The stockholders' equity of Palepu Company at December 31, 2018, appears below. Common stock, $10 par value, 200,000 shares authorized: 80,000 shares issued and outstanding $800,000 Paid-in capital in excess of par value 480,000 Retained eamings 305,000 During 2019, the following transactions occurred: May 12 Declared andissued a 7% stock dividend the common stock market value was $18 per share. Dec. 31 Declared and paid a cash dividend of 75 cents per share. Income Statement a. Using the financial statement effects template, Illustrate the effects of these transactions. Use negative signs with answers when appropriate. When applicable, enter total amount for contributed capital. Balance Sheet Noncash Contrib Earned Transaction Cash Asset Asset Liabilities Capital + Capital 5/12 Declared and issued stock dividend 1,440,000 X + 0- O X4 OX 12/31 Declared and paid cash dividend 150,000 X + 0- OX Revenues Expenses Net Income 0 0. D- Credit b. Prepare the journal entries for these transactions. General Journal Date Description Debit 5/12 Retained earnings OX Common Stock Additional paid-in capital 0 12/31 Retained earnings Cash 0 OX c. Post the journal entries from b to the related T-accounts. Retained Earnings (SE) Cash (A) 800.000 5/12 5/12 Common Stock (SE) 0 0 OX 5/12 OX OX 5/12 12/31 Additional Paid-in Capital (SE) OX 0 12/31 OX 12/31 0 12/31 0 d. Prepare a retained earnings reconciliation for 2019 assuming that the company reports 2019 net income of $283,000. Do not use negative signs with answers below. PALEPU COMPANY Statement of Retained Earnings For the Year Ended December 31, 2019 Retained eamings, December 31, 2018 0X Add Net income OX Less Cash dividends declared Stock dividends declared OX OX 0 Retained earnings, December 31, 2019 Check