Question

Need-to-Knows Saved Help The stockholders' equity section of Jun Company's 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 $20 (prior to the dividend). Common stock-$5 par value, 375,800 shares authorized, 200,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,000,000 600.000 833, eee $2,433,888 Prepare the stockholders' equity section immediately after the stock dividend. JUN COMPANY Stockholders' Equity April 2 (after stock dividend) Total paid-in capital Total stockholders' equity

Answer 1

Stockholder's Equity section after Stockholders dividend

Common stock [200000 shares issued and outstanding + 10% stock dividend (20000) ] @ $5 par value	$1100000
Add: Paid in capital in excess of Par value [$600000 + 20000 shares of stock dividend X ($20 - $5)]	$900000
Total paid in capital	$2000000
Retained earnings	$433000
Total Stockholder's Equity	$2433000