On January 1, 2017, Susann, Inc., declared a 15% stock dividend on its common stock when the
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Question:
On January 1, 2017, Susann, Inc., declared a 15% stock dividend on its common stock when the market value of the common stock was $20 per share. Shareholders' equity before the stock dividend was declared consisted of:
Common stock, $10 par value, authorized 40,000 shares; issued and outstanding 5,000 shares
$50,000 Additional paid-in capital on common stock 200,000 Retained earnings 60,000 Total shareholders' equity $310,000 . What happened to retained earnings as a result of the stock dividend declaration?
$6,000 decrease
$7,500 decrease
$15,000 increase
No change
None of these choices is correct.
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date: