Answer Happy

Identifying and Analyzing Financial Statement Effects of Dividends The stockholders' equity of DiFrancesco Company at March 31, 2019 is shown below. 4% preferred stock, $1,000 par value, 25,000 shares authorized; 10,000 shares issued and outstanding $10,000,000 Common stock, $1 par value, 3,000,000 shares authorized; 700,000 shares issued and outstanding 700,000 Additional paid-in capital-preferred stock 60,000 Additional paid-in capital-common stock 17,150,000 Retained earnings 44,105,120 Total stockholders' equity $72,015,120 The following transactions, among others, occurred during the fiscal year ended March 31, 2020. April 15, 2019 Declare and pay preferred dividends of $360,000. April 15, 2019 Declare and pay common dividends of $1.20 per share. October 1, 2019 Execute a 3-for-1 stock split of the common stock when the stock price was $126 per share. March 1, 2020 Declare and pay common dividends of $0.40 per share. (a) Use the financial statement effects template to indicate the effects of these separate transactions. Note: Use negative signs with answers, when appropriate. Balance Sheet Income Statement Liabilities + Contributed + Cash Asset Noncash = Assets Capital Earned Capital (400,000) * Revenue Transaction Apr. 15 Expenses = (400,000) * 0✓ 0 ✓ 0 ✓ 0 ✓ 0 ✓ Apr. 15 (910,000) * 0 ✓ 0 ✓ 0 ✓ 0 ✓ 0 ✓ 910,000 * 0 ✓ 0 ✓ 0 ✓ Oct. 1 0 ✓ 0✔ 0✔ 0✓ 0 ✓ 0 ✓ 0 ✓ Mar. 1 (350,000) * 0 0✔ 0✓ (350,000) * 0✔ 0✔ 0✓ (b) At March 31, 2020, the company reported net income for the year of $8,900,610. Compute retained earnings as of March 31, 2020. $0 X Net Income