On June 30, 2018, Samuel, Inc. showed the following data on the equity section o

Question

On June 30, 2018, Samuel, Inc. showed the following data on the equity section of their balance sheet: Stockholders' Equity Common Stock, $1.00 par, 197,000 shares authorized 143,000 shares issued and outstanding Paid In Capital in Excess of Par-Common Retained Earnings Total Stockholder's Equity $143,000 $261,000 951,000 $1,355,000 On July 1, 2018, the company declared and distributed a 7% stock dividend. The market value of the stock at that time was $18 per share. Following this transaction, what is total stockholders' equity? OA. $1.355.000 O B. $1,106,780 OC. $1,526,280 O D. $1,270,160

Explanation / Answer

By declared and distributed stock dividend there is no effect on total stockholder's equity but Common Stock and paid in capital in excess of par value increase and retained earnings decrease.

So answer is a) $1355000

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