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
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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
outstanding)
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?
Transcribed Image Text: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 outstanding) 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?
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) immediateiy before the stock
dividend and (b) immediately after the stock dividend.
Stockholders' Equity
Before
Stock
Dividend
After
Stock
Dividend
Stock
Dividend
Contributed Capital:
Total Contributed Capital
0.
Total Stockholders' Equity
Required 1
Required 2 >
Transcribed Image Text: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) immediateiy before the stock dividend and (b) immediately after the stock dividend. Stockholders' Equity Before Stock Dividend After Stock Dividend Stock Dividend Contributed Capital: Total Contributed Capital 0. Total Stockholders' Equity Required 1 Required 2 >
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