Hello, I need help with the following questions. Please explain step-by-step your computations. Than

 
   

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Hello,

I need help with the following questions. Please explain step-by-step your computations. Thank you!

The stockholders’ equity of Hammel Company at December 31, 2016, is shown below:

5% Preferred stock, $100 par value, 10,000 shares authorized; 6,000 shares issued and outstanding $600,000

Computed as 6,000 shares * $100 par value

Common stock, $5 par value, 200,000 shares authorized; 70,000 shares issued and outstanding $350,000

Computed as 70,000 shares * $5 par value

Paid- in capital in excess of par value -Preferred stock

$50,000

Paid- in capital in excess of par value – Common stock

$400,000

Retained Earnings

$747,000

Total shareholders’ equity

$2,147,000

The following transactions occurred during 2017.

April 1. Declared and issued a 100% stock dividend on all outstanding shares of common stock. The market value of the stock was $14 per share. By how much retained earnings were reduced?

December 7. Declared and issued a 4% stock dividend on all outstanding shares of common stock. The market value of the stock was $17 per share. By how much retained earnings were reduced?

December 20. Declared and paid (1) the annual cash dividend on the preferred stock and (2) a cash dividend of 90 cents per common share. How much cash paid in dividends?

COMPUTE THE ABOVE TRANSACTIONS.!