On October 1, Oriole Corporation's stockholders' equity is as follows. Common stock, $7 par value $535,500 Paid-in capital in excess of par-common stock 30,000 Retained earnings 167,000 Total stockholders' equity $732,500 On October 1, Oriole declares and distributes a 10% stock dividend when the market price of the stock is $14 per share.
On October 1, Oriole Corporation's stockholders' equity is as follows. Common stock, $7 par value $535,500 Paid-in capital in excess of par-common stock 30,000 Retained earnings 167,000 Total stockholders' equity $732,500 On October 1, Oriole declares and distributes a 10% stock dividend when the market price of the stock is $14 per share.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question-based on, "compute par value".
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Transcribed Image Text:On October 1, Oriole Corporation's stockholders' equity is as follows.
Common stock, $7 par value
$535,500
Paid-in capital in excess of par-common stock
30,000
Retained earnings
167,000
Total stockholders' equity
$732,500
On October 1, Oriole declares and distributes a 10% stock dividend when the market price of the stock is $14 per share.

Transcribed Image Text:Compute the par value per share (1) before the stock dividend and (2) after the stock dividend.
Par value before the stock dividend
2$
Par value after the stock dividend
2$
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Step 1
Stock dividend means when shares of the company are issued by way of dividend to the shareholders. Here, number of shares will increase but total value pertaining to shareholders will be same
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