Question

The stockholders' equity section of Jun Cos balance sheet as of April 1 follows. On April 2, Jun declares and distributes a 10% stock dividend. The stock's per share market value on April 2 is $25 (prior to the dividend). Common stock-$5 par value, 455, eee shares authorized, 240,eee shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,2ee, eee 570,000 873, eee $2,643,000 Prepare the stockholders' equity section immediately after the stock dividend is distributed. JUN CO. Stockholders' Equity April 2 (after stock dividend) Common stock $ 1,440,000 Paid-in capital in excess of par value, common stock Total pald-in capital Retained earnings Total stockholders' equity 1.440,000 $ 1,440,000

Answer 1

Answer
Stockholder's Equity
Common Stock [ (240000 + 24000) x $ 5 par]	$1,320,000	240000+10%=264000*5
Paid in Capital in excess of Par Common Stock [570000 + 480000]	$1,050,000	(24000*25)-(24000*5)+570000
Total Paid in Capital	$2,370,000	1320000+1050000
Retained earnings [$873000 - 600000]	$273,000	873000-600000
Total Stockholder's Equity	$2,643,000