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
Common stock, $5 par value, 200,000 shares authorized; 700,000 shares issued and outstanding	$350,000
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.

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.

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.

A). Use financial statement effects template to indicate the effects of these separate transactions.

B). Compute retained earnings for 2017 assuming that the company reports 2017 net income of $523,000.