Its urgent **Stockholders' Equity Section - Educational Explanation**The stockholders' equity section of Jun Company’s balance sheet as of April 1 is presented below. On April 2, Jun declares and distributes a 20% stock dividend. The stock’s per share market value on April 2 is $10 (prior to the dividend).**Balance Sheet as of April 1:**- Common stock - $5 par value, 445,000 shares authorized, 235,000 shares issued and outstanding: - Common stock value: $1,175,000 - Paid-in capital in excess of par value, common stock: $560,000 - Retained earnings: $868,000 - **Total stockholders' equity: $2,603,000****Stockholders' Equity After Stock Dividend:****JUN COMPANY**| Stockholders' Equity | April 2 (after stock dividend) ||------------------------|-------------------------------|| Common stock | $1,740,000 || Total paid-in capital | $1,740,000 || Retained earnings | $343,000 || **Total stockholders' equity** | **$2,083,000** |**Analysis:**- **Common Stock:** Reflects the increased value after distributing the stock dividend.- **Total Paid-in Capital:** Reflects the total capital provided by shareholders.- **Retained Earnings:** Reduced to reflect the distribution of dividends.- **Total Stockholders' Equity:** The total financial interest of shareholders in the company post-dividend.This detailed breakdown shows the impact of the stock dividend on Jun Company's equity.

Shares issued as stock dividend = shares issued and outstanding× 20% = 235,000×20% = 47000 shares Total stock dividend = Shares issued as stock dividend * Market price per share Total stock dividend = 47,000 * $10 = $4,70,000 Common stock increased = Shares issued as stock dividend * Par value Common stock increased by = 47,000 * 5 Common stock increased by = $235,000 Paid-in capital in excess of par value common stock increased =Total stock dividend - Common stock increased = $470,000 - $235,000 = $235,000JUN COMPANY Stockholders equity section Common Stock $14,10,000(1175000+235000) Paid-in capital in excess of par value, common stock $795,000 ($560,000+$235,000) Total paid in capital $22,05,000 Retained earnings $398,000 ($868,000 - $470,000) Total stockholder equity $26, 03,000