The company with the common equity accounts shown here has declared a stock dividend of 15 percent

Question:

The company with the common equity accounts shown here has declared a stock dividend of 15 percent when the market value of its stock is $57 per share. What effects on the equity accounts will the distribution of the stock dividend have?

Common stock ($1 par value)..................................$ 435,000

Capital surplus....................................................2,150,000

Retained earnings.................................................5,873,000

Total owners' equity............................................$8,458,000

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...