On December 31, the stockholders' equity section of the balance sheet of Monk Associates reflected the following: Common stock (par $10; 60,500 shares authorized; 25,500 issued and outatanding) Additional paid-in capital Retained earnings $ 255,000 12,500 77,500 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 Monk Associates reflected the following: Common stock (par $10; 60,500 shares authorized; 25,500 issued and outatanding) Additional paid-in capital Retained earnings $ 255,000 12,500 77,500 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?

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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