FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Although Oriole Company has enough retained earnings legally to declare a dividend, its working capital is low. The board of directors is considering a stock dividend instead of a cash dividend. The common stock is currently selling at $34 per share. The following is Oriole's current shareholders' equity:

 

Common stock, $10 par $300,000
Additional paid-in capital on common stock 600,000
Total contributed capital $900,000
Retained earnings 1,300,000
Total shareholders' equity $2,200,000

 

Required:

1. Assuming a 15% stock dividend is declared and issued, prepare the shareholders' equity section immediately after the date of issuance.

Oriole Company
Stockholders' Equity
 
Common stock, $10 par $fill in the blank 
Additional paid-in capital on common stock fill in the blank 
Total contributed capital $fill in the blank 
Retained earnings fill in the blank 
Total shareholders' equity $fill in the blank 

2. Assuming, instead, that a 30% stock dividend is declared and issued, prepare the shareholders' equity section immediately after the date of issuance.

Oriole Company
Shareholders' Equity
 
Common stock, $10 par $fill in the blank 
Additional paid-in capital on common stock fill in the blank 
Total contributed capital $fill in the blank 
Retained earnings fill in the blank 
Total shareholders' equity $fill in the blank 
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