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If a firm has retained earnings of $3.8 million, a common shares account of $5.8 million, and additional pald-in capital of $11.6 million, how would these accounts change in response to a 10 percent stock dividend? Assume market value of equity is equal to book value of equity. (Enter your answers in dollars not in millions. Input all amounts as positive values. Indicate the direction of the effect by selecting "Increase", "decrease" and "no change" from the dropdown menu.) Retained earnings Common stock Additional paid-in capital decrease Increase Increase to to SS S

If a firm has retained earnings of $3.8 million, a common shares account of $5.8 million, and additional pald-in capital of $11.6 million, how would these accounts change in response to a 10 percent stock dividend? Assume market value of equity is equal to book value of equity. (Enter your answers in dollars not in millions. Input all amounts as positive values. Indicate the direction of the effect by selecting "Increase", "decrease" and "no change" from the dropdown menu.) Retained earnings Common stock Additional paid-in capital decrease Increase Increase to to SS S

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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If a firm has retained earnings of $3.8 million, a common shares account of $5.8 million, and additional paid-in capital of $11.6 million, how would these accounts change in response to a 10 percent stock dividend? Assume market value of equity is equal to book value of equity. (Enter your answers in dollars not in millions. Input all amounts as positive values. Indicate the direction of the effect by selecting "Increase", "decrease" and "no change" from the dropdown menu.) Retained earnings Common stock Additional paid-In capital decrease to Increase to Increase to in S S
Transcribed Image Text:If a firm has retained earnings of $3.8 million, a common shares account of $5.8 million, and additional paid-in capital of $11.6 million, how would these accounts change in response to a 10 percent stock dividend? Assume market value of equity is equal to book value of equity. (Enter your answers in dollars not in millions. Input all amounts as positive values. Indicate the direction of the effect by selecting "Increase", "decrease" and "no change" from the dropdown menu.) Retained earnings Common stock Additional paid-In capital decrease to Increase to Increase to in S S
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