Please solve the problem in a T-account format as provided. Thank you!

calculations are modified slightly. In this case, the amount of preferred dividend is subtracted from income prior to making the EPS calculation. This is not done when calculating the fully diluted EPS since conversion to common stock would eliminate the preferred dividend. Problems for Section 11B 11B-1. On January 4 KATIE Incorporated has the following balances in its owners' equity accounts: RETAINED EARN COM ST ($4 par) APIC-COMMON 98000 80000 60000 a. On that date KATIE announces and distributes a 10% stock dividend. At this point in time the market price of the stock is $20 per share. Show the necessary accounting entries. b. Show the necessary accounting entries if KATIE had announced and distributed a 40% stock dividend on January 4 instead of the small stock dividend discussed in a. a. Add Paid-In Capital- Com Common Stock (S par) Retained Earnings b. Add Paid-In Capital - Com Retained Earnings Common Stock ($ par)