Calculate the changes in the following financials after a 20% Stock Dividend was distributed to ABC's...

 

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Calculate the changes in the following financials after a 20% Stock Dividend was distributed to ABC's shareholders. Assume ABC's market price per share = $100. Before Stock Dividend Accounts: ABC's Stockholder's Equity Accounts (millions of dollars, except per share values): Common stock (10 million shares outstanding, $1 par) $10 $10 $280 Additional paid-in-capital Retained Earnings Total Common Stockholders' Equity Book value per share $300 $30 Calculate the changes in the following financials after a 20% Stock Dividend was distributed to ABC's shareholders. Assume ABC's market price per share = $100. Before Stock Dividend Accounts: ABC's Stockholder's Equity Accounts (millions of dollars, except per share values): Common stock (10 million shares outstanding, $1 par) $10 $10 $280 Additional paid-in-capital Retained Earnings Total Common Stockholders' Equity Book value per share $300 $30

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SOLUTION Stock dividend 20 Therefore 10M X 20 2M shares Journal Retained earning... View the full answer