Required Information [The following information applies to the questions displayed below) Bacon Inc. has the following stockholders' equity section in its May 31, 2019, comparative balance sheets May 2012 A320 88,080,000 Pald.in capitali Preferred stock, 6120 par value, 51, emalative. 100.000 share authorized, 74,000 share somed and tanding Common stock, 86 par value, 600,000 shares authorised, 420,000 and 400,000 shares issued, respectively Additional paid.in capital Retained earning Lew Traury non stock, at couts 21.000 shares and 19,500 shares rompectively Total stockholders' equity 7 16,670,000 12.070,000 8,000,000 2,400,000 14. 140.000 11,700,000 1.922.000 s (1.672,000) $35.342.000 1-1. Assume that on June 1 the market value of the common stock was $42 per share and that the board of directors declared a 4% stock dividend on the issued shares of common stock. Use the horizontal model to show the issuance of the stock dividend. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Liabilities Notice Assets Stockholders' Equity Retained Gaming Additional paid atal Common stock . e-2. Assume that on June 1 the board of directors declared a cash dividend of $0.23 per share on the outstanding shares of common stock. The dividend will be payable on July 15 to stockholders of record on June 15. Identify the impact this action will have on the June 30 balance sheet and on the income statement for June. (Select all that apply.) Check All That Apply The June 30, 2019, balance sheet will reflect a reduction in retained earnings and an increase in dividends payable for the same amount The June 30, 2019, balance sheet will reflect a reduction in dividends payable and an increase in retained earnings for the same amount Dividends declared have no effect on the income statement Dividends declared will result in a reduction of net profit