Answer:
after stock dividends:
Common Stock 143,000
Capital in excess of par 143,000
Retained Earnings 224,000
Total 510,000
after cash dividends:
Common Stock 143,000
Capital in excess of par 143,000
Retained Earnings 213,275
Total 499,275
Step-by-step explanation:
stock dividends:
65,000 shares x 10% = 6,500
6,500 x $4 = 26,000
6,500 x $2 = 13,000 (par value)
difference 13,000 additional paid-in
retained earnings debit 26,000
common stock 13,000 credit
additional paid-in 13,000 credit
Now 15 cent cash divideds:
65,000 + 6,500 = 71,500 x 0.15 = 10,725
this will reuce retained earnings and cash.