Question

Question 2 View Policies Current Attempt in Progress The stockholders' equity section of Bridgeport Corp's balance sheet consists of common stock ($8 par) $1,096,000 and retained earnings $450,000. A 15% stock dividend (20,550 shares) is declared when the market price per share is $17. (a) Show the before-and-after effects of the dividend on the components of stockholders' equity. Before Dividend After Dividend Stockholders' Equity Paid-in Capital Common Stock (b) Show the before-and-after effects of the dividend on the shares outstanding. Before Dividend After Dividend Outstanding shares eTextbook and Media List of Accounts

Answer 1

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Bridgeport Corp		Note
Common Stock value	1,096,000.00	A
Par Value	8.00	B
Opening Common Shares	137,000.00	C=A/B
Stock dividend %	15%	D
Number of Shares as stock dividend	20,550.00	E=C*D
Market price	17.00	F
Value of stock dividend distributable	349,350.00	G=E*F
Par value per share	8.00	See B
Par value of Common stock as dividend	164,400.00	H=E*B
Paid in capital in excess of par value per share	9.00	I=F-B
Paid in capital in excess of par value	184,950.00	J=E*I
Closing common stock value	1,260,400.00	K=A+H
Closing number of common stock	157,550.00	N=C+E
Opening Retained Earnings	430,000.00	L
Less: Value of stock dividend distributable	349,350.00	See G
Closing Retained Earnings	80,650.00	M=L-G
Answer a
Stockholder's Equity	Before Dividend	After Dividend
Paid-In Capital:	Amount $	Amount $
Common Stock	1,096,000.00	1,260,400.00	See Note K
Paid-In Capital in Excess of Par-Common Stock	-	184,950.00	See Note J
Retained Earnings	430,000.00	80,650.00	See Note M
Total Stockholder's Equity	1,526,000.00	1,526,000.00
Answer b	Before Dividend	After Dividend
Outstanding shares	137,000.00	157,550.00	See Note N