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
Paid- in capital in excess of par value – Common stock
Total shareholders’ equity
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.!