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 15% stock dividend. The stock's per share market value on April 2 is $15 (prior to the dividend). Common stock-$5 par value, 435,000 shares authorized, 230,000 shares issued and outstanding $1,150,000 Paid-in capital in excess of par value, common stock 550,000 863,000 $2,563,000 Retained earnings Total stockholders' equity Prepare the stockholders' equity section immediately after the stock dividend. JUN COMPANY Stockholders' Equity April 2 (after stock dividend) Common stock Paid-in capital in excess of par value, common stock Total paid-in capital Total stockholders' equity

Explanation / Answer

Common Stock (230000 * 115%) * 5

1322500

Paid in Capital in excess of Par value, common stock (550000 + {34500 * 10})

895000

Total paid in capital

2217500

Retained Earning (863000 – {34500 * 15})

345500

Total stockholder Equity

2563000

Common Stock (230000 * 115%) * 5

1322500

Paid in Capital in excess of Par value, common stock (550000 + {34500 * 10})

895000

Total paid in capital

2217500

Retained Earning (863000 – {34500 * 15})

345500

Total stockholder Equity

2563000

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