The company with the common equity accounts shown here has declared a 10 percent stock dividend at

Question:

The company with the common equity accounts shown here has declared a 10 percent stock dividend at a time when the market value of its stock is $53 per share. What effects on the equity accounts will the distribution of the stock dividend have?

Common stock ($1 par value)........................... $ 290,000

Capital surplus............................................. 1,345,000

Retained earnings ..........................................3,465,000

Total owners' equity ......................................$5,100,000

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... 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...