Stock Dividends The company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $53 per share. What effects will the distribution of the stock dividend have on the equity accounts? Common stock ($1 par value) Capital surplus Retained earnings Total owners' equity $ 245,000 618,000 2,758,300 $3,621,300
Stock Dividends The company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $53 per share. What effects will the distribution of the stock dividend have on the equity accounts? Common stock ($1 par value) Capital surplus Retained earnings Total owners' equity $ 245,000 618,000 2,758,300 $3,621,300
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Stock Dividends
The company with the common equity accounts shown
here has declared a 15 percent stock dividend when the market value of its stock is
$53 per share. What effects will the distribution of the stock dividend have on the
equity accounts?
Common stock ($1 par value)
Capital surplus
Retained earnings
Total owners' equity
$ 245,000
618,000
2,758,300
$3,621,300](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F18a59f0a-7c8f-49a1-8487-9703585f340d%2F5efa7e4e-fe7e-4415-b59e-01de4f418528%2Fxy7h5sv_processed.png&w=3840&q=75)
Transcribed Image Text:Stock Dividends
The company with the common equity accounts shown
here has declared a 15 percent stock dividend when the market value of its stock is
$53 per share. What effects will the distribution of the stock dividend have on the
equity accounts?
Common stock ($1 par value)
Capital surplus
Retained earnings
Total owners' equity
$ 245,000
618,000
2,758,300
$3,621,300
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