(b) Indicate the balances in the three stockholders' equity accounts after the stock dividend shares have been distributed. Common stock 2$ Paid-in capital in excess of par value $ I Retained earnings 24
(b) Indicate the balances in the three stockholders' equity accounts after the stock dividend shares have been distributed. Common stock 2$ Paid-in capital in excess of par value $ I Retained earnings 24
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please solve problems (a) and (b) completely

Transcribed Image Text:(b)
Indicate the balances in the three stockholders' equity accounts after the stock dividend shares have been distributed.
Common stock
$
Paid-in capital in excess of par value
2$
Retained earnings
$4

Transcribed Image Text:On October 1, Pharoah Corporation's stockholders' equity is as follows.
Common stock, $6 par value
$ 453,000
Paid-in capital in excess of par-common stock
29,000
Retained earnings
157,000
Total stockholders' equity
$ 639,000
On October 1, Pharoah declares and distributes a 10% stock dividend when the markat price of the stock is $ 15 per share.
(a)
Compute the par value per share (1) before the stock dividend and (2) after the stock dividend.
Par value before the stock dividend
2$
Par value after the stock dividend
$
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