The stockholders equity section of Martin Corporation consists of common stock ($10 par) $2,000,000 and retained earnings $300,000 A 10 stock dividend (20,000 shares) is declared when the market value per share is $14 Show the before and after effects of the dividend on the following (a) The compon...

Before Dividend After Dividend a Stockholders equity Paidin capital Com ...

The stockholders equity section of Martin Corporation consists of common stock ($10 par) $2,000,000 and retained earnings

Question:

The stockholders’ equity section of Martin consists of ($10 par) $2,000,000 and retained earnings $300,000. A 10% stock (20,000 shares) is declared when the market value per share is $14. Show the before-and-after effects of the on the following.
(a) The components of stockholders’ equity.
(b) Shares outstanding.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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...