The stockholders\' equity section of Jun Company\'s balance sheet as of April 1

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 $10 (prior to the dividend). Common stock-$5 par value, 425,000 shares authorized, 225,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 1,125,000 540,000 858,000 s 2,523,000 Prepare the stockholders' equity section immediately after the stock dividend. JUN COMPANY Stockholders' Equity April 2 (after stock dividend) ?ommon stock Paid-in capital in excess of par value, common stock Total paid-in capital Retained earnings Total stockholders' equity

Explanation / Answer

Common Stock 1237500 =1125000+(22500*5) Paid in capital in excess of par value, Common Stock 652500 =540000+(22500*5) Total paid in capital 1890000 Retained earnings 633000 =858000-(22500*10) Total stockholders' equity 2523000

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