Study Problem 13-3B starting on page 668.

(a) How much stockholders' equity does Diamondback have at the beginning of the current fiscal year.

(b) Use the accounting equation and your answer to part (a) to show how you would calculate Diamondback's assets and liabilities at beginning of the current fiscal year.

(c) Summarize your findings.

Chapter 13 Corporations: Organization, Stock Transactions, and Dividends 641 At the end of the accounting period, the balance in Cash Dividends will be trans ferred to Retained Earnings as part of the closing process. This closing entry debits Retained Earnings and credits Cash Dividends for the balance of the cash dividends account. If the cash dividends have not been paid by the end of the period, Cash Dividends Payable will be reported on the balance sheet as a current liability. Example Exercise 13-3 Entries for Cash Dividends ob].4 The important dates in connection with a cash dividend of $75,000 on a corporation's common stock are February 26, March 30, and April 2. Journalize the entries required on each date Follow My Example 13-3 Cash Dividends. 75,000 Cash Dividends Payable No entry required. Apr. 2 Cash Dividends Payable 75,000 Cash 75,000 Feb. 26 ... 75,000 Mar. 30 Practice Exercises: PE 13-3A, PE 13 3B Stock Dividends A stock dividend is a distribution of shares of stock to stockholders. Stock dividends are normally declared only on common stock and issued to common stockholders. A stock dividend affects only stockholders' equity. Specifically, the amount of the stock dividend is transferred from Retained Earnings to Paid.In Capital. The amount transferred is normally the fair value (market price of the shares issued in the stock sliyidend Chapter 13 Corporations: Organization, Stock Transactions, and Dividends 641 At the end of the accounting period, the balance in Cash Dividends will be trans ferred to Retained Earnings as part of the closing process. This closing entry debits Retained Earnings and credits Cash Dividends for the balance of the cash dividends account. If the cash dividends have not been paid by the end of the period, Cash Dividends Payable will be reported on the balance sheet as a current liability. Example Exercise 13-3 Entries for Cash Dividends ob].4 The important dates in connection with a cash dividend of $75,000 on a corporation's common stock are February 26, March 30, and April 2. Journalize the entries required on each date Follow My Example 13-3 Cash Dividends. 75,000 Cash Dividends Payable No entry required. Apr. 2 Cash Dividends Payable 75,000 Cash 75,000 Feb. 26 ... 75,000 Mar. 30 Practice Exercises: PE 13-3A, PE 13 3B Stock Dividends A stock dividend is a distribution of shares of stock to stockholders. Stock dividends are normally declared only on common stock and issued to common stockholders. A stock dividend affects only stockholders' equity. Specifically, the amount of the stock dividend is transferred from Retained Earnings to Paid.In Capital. The amount transferred is normally the fair value (market price of the shares issued in the stock sliyidend