Question

The stockholders’ equity section of Jun Company’s balance sheet as of April 1 follows. On April 2, Jun declares and distributes a 10% stock dividend. The stock’s per share market value on April 2 is $ 20 (prior to the dividend). Prepare the stockholders’ equity section immediately after the stock dividend.
Common stock — $ 5 par value, 375,000 shares
authorized, 200,000 shares issued and outstanding . . . . . . . $ 1,000,000
Paid- in capital in excess of par value, common stock . . . . . 600,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 833,000
Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,433,000



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  • CreatedNovember 26, 2013
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