On June 30, 2017, Rangers, Inc. showed the following data on the equity section

Question

On June 30, 2017, Rangers, Inc. showed the following data on the equity section of their balance sheet:

Stockholders' Equity

Common Stock, $1 par; 197,000 shares authorized,                                                                                 146,000 shares issued and outstanding                                        $146,000

Paid-In Capital in Excess of Par--Common                                    $263,000

Retained Earnings                                                                         958,000

Total Stockholder's Equity                                                          $1,367,000

On July 1, 2017, the company declared and distributed a 10% stock dividend. The market value of the stock at that time was $15 per share. Following this transaction, what is the number of shares issued?

A) 297,300

B) 160,600

C) 86,500

D) 146,000

Explanation / Answer

B) 160,600 Statement showing computations Particulars Amount shares issued and outstanding on 30 June             146,000.00 Stock Dividend @10% on July 1 2017 (146,000*10%)               14,600.00 number of shares issued following this transaction             160,600.00

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