Jackson Enterprises has the following capital (equity) accounts: Common stock ($1 par; 100,000 shares outstanding) ... $100,000

Question:

Jackson Enterprises has the following capital (equity) accounts:
Common stock ($1 par; 100,000 shares outstanding) ... $100,000
Additional paid-in capital............. 200,000
Retained earnings................ 225,000
The board of directors has declared a 20 percent stock on
January 1 and a $0.25 cash on March 1. What changes occur in the capital accounts after each transaction if the price of the stock is $4?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...