The stockholder dividend. The stock\'s per share market value on Apri 2 is $15 (
ID: 2511165 • Letter: T
Question
The stockholder dividend. The stock's per share market value on Apri 2 is $15 (prior to the dividend) s equity section of Jun Company's balance sheet as of April 1 follows. On April 2, Jun declares and distributes a 10% stock Common stock-$5 par value, 535,000 shares authorized, 280,000 shares issued and outstanding Paid-in Retained earnings $ 1,400,000 650,000 913,000 $ 2,963,000 capital in excess of par value, common stock Total stockholders' equity Prepare the stockholders' equity section immediately after the stock dividend JUN COMPANY Stockhoiders Equity April 2 (after stock dividand) Total paid-in capital Total stockholiders' equity Hints Hint#1 References Worksheet Difficuity: 2 Medium Learning Objective: 11-P2 Record transactions involving cash dividends, stock dividends, and stock splitsExplanation / Answer
Answer:
1
Jun Company
Stockholders Equity
April 2 (after stock dividend)
Common stock
1540000
paid in capital excess of par value-
Common stock
930000
Total paid in capital
2470000
retained earning
493000
Total Stock holder's Equity
2963000
Working notes for the above answer is as under
1
Common stock value
=(280,000*10%)*5
=140,000
2
paid in capital excess of par value-
Common stock
=(280,000*10%)* (15-5)
=280,000
3
retained earning balance
=913,000-(120,000+280,000)
=913000-420,000
=493000
Jun Company
Stockholders Equity
April 2 (after stock dividend)
Common stock
1540000
paid in capital excess of par value-
Common stock
930000
Total paid in capital
2470000
retained earning
493000
Total Stock holder's Equity
2963000
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