On December 31, the stockholders' equity section of the balance sheet of Maroon Manufacturing reflected the following Common stock (par $10; 60,900 shares authorized; 25,900 issued and outstanding) Additional paid-in capital Retained earnings $ 259,000 79,500 On February 1 of the following year, a 12 percent stock dividend was issued. The market value of the stock on February 1 was $18 per share. Required: 1. For comparative purposes, prepare the stockholders' equity section of the balance sheet (a) immediately before the stock dividend and (b) immediately after the stock dividend 2. If the stock dividend were 100%, would the additional paid-in capital account be affected?
On December 31, the stockholders' equity section of the balance sheet of Maroon Manufacturing reflected the following Common stock (par $10; 60,900 shares authorized; 25,900 issued and outstanding) Additional paid-in capital Retained earnings $ 259,000 79,500 On February 1 of the following year, a 12 percent stock dividend was issued. The market value of the stock on February 1 was $18 per share. Required: 1. For comparative purposes, prepare the stockholders' equity section of the balance sheet (a) immediately before the stock dividend and (b) immediately after the stock dividend 2. If the stock dividend were 100%, would the additional paid-in capital account be affected?
Chapter1: Financial Statements And Business Decisions
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On December 31, the stockholders' equity section of the balance sheet of Maroon Manufacturing reflected the following
Common stock (par $10; 60,900 shares authorized; 25,900 issued and
outstanding)
Additional paid-in capital
Retained earnings
On February 1 of the following year, a 12 percent stock dividend was issued. The market value of the stock on February 1 was $18 per
share
Required:
1. For comparative purposes, prepare the stockholders' equity section of the balance sheet (a) immediately before the stock dividend
and (b) immediately after the stock dividend
2. If the stock dividend were 100%, would the additional paid-in capital account be affected?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
For comparative purposes, prepare the stockholders' equity section of the balance sheet (a) immediately before the stock
dividend and (b) immediately after the stock dividend.
Contributed Capital
Total Contributed Capital
Total Stockholders' Equity
Before
Stock
Dividend
Stockholders' Equity
0
(Required 1
Stock
Dividend
$ 259,000
12,500
79,500
0
After
Stock
Dividend
0
Required 2 >
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