Brief Exercise 11-6 Your answer is partially correct. Try again. The stockholder
ID: 2523421 • Letter: B
Question
Brief Exercise 11-6 Your answer is partially correct. Try again. The stockholders' equity section of Monty Corp.'s balance sheet consists of common stock (13,700 shares) is declared when the market price per share is $15. S8 par) $1,096,000 and retained earnings $420,000. A 10% stock dividend (a) Show the before-and-after effects of the dividend on the components of stockholders' equity. Before Dividend After Dividend Paid-in Capital Common Stock Pald-in Capital in Excess of Par Value-Common Stock Total Paid-in Capital 21 Earnings 151 (b) Show the before-and-after effects of the dividend on the shares outstanding. Before Dividend After Dividend Outstanding sharesExplanation / Answer
The components of stockholders’ equity
Before Dividend
After Dividend
Stockholders’ equity
Paid-in capital
Common stock
1096000
1205600
Paid in capital in excess of par value—common stock
0
95900
Total paid-in capital
1096000
1301500
Retained earnings
420000
214500
Total stockholders’ equity
1516000
1516000
The shares outstanding
Before Dividend
After Dividend
Outstanding shares
137000
95900
Note:
The components of stockholders’ equity
Before Dividend
After Dividend
Stockholders’ equity
Paid-in capital
Common stock
1096000
1205600
Paid in capital in excess of par value—common stock
0
95900
Total paid-in capital
1096000
1301500
Retained earnings
420000
214500
Total stockholders’ equity
1516000
1516000
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