Question

y has had 4 yeers of net income. Due to this sucpess, t Retained sarnings after stock dnidend Retained earnings efter stock split attempt

Answer 1

1	Calculation of retained earnings after stock dividend
	Retained earninga balance	$11,200,000
	Less: Stock dividend (300,000 shares*18%*$3)	($162,000)
	Total retained earnings after stock dividend	$11,038,000
	Total retained earnings after stock split	$11,200,000
	There is no change in retained earnings Since stock split is just change in share par value
1	Ans
	Retained earnings after stock dividend	$11,038,000
	Retained earnings after stock split	$11,200,000
	Calculation of stock holders equity after stock dividend
	Stock holders equity:
	Paid in capital (4,300,000+162,000)	$4,462,000
	Retained earnings (taken from answer 1)	$11,038,000
	Total stockholders equity	$15,500,000
	Calculation of stock holders equity after stock split
	Paid in capital	$4,300,000
	Retained earnings (taken from answer 1)	$11,200,000
	Total stockholders equity	$15,500,000
2	Ans
	stockholders equity after stock dividend	$15,500,000
	stockholders equity after stock split	$15,500,000