December 31, the stockholders’ equity section of the balance sheet of R & B Corporation reflected the following: Common stock (par $10; authorized 61,700 shares, outstanding 26,700 shares) $ 267,000 Additional paid-in capital 13,700 Retained earnings 83,500 On February 1 of the following year, a 12 percent stock dividend was issued. The market value of the stock on February 1 was $18 per share.
December 31, the stockholders’ equity section of the balance sheet of R & B Corporation reflected the following: Common stock (par $10; authorized 61,700 shares, outstanding 26,700 shares) $ 267,000 Additional paid-in capital 13,700 Retained earnings 83,500 On February 1 of the following year, a 12 percent stock dividend was issued. The market value of the stock on February 1 was $18 per share.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter12: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 18E: Stockholders' Equity section of balance sheet The following accounts and their balances appear in...
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Question
On December 31, the
| Common stock (par $10; authorized 61,700 shares, outstanding 26,700 shares) | $ | 267,000 | |
| Additional paid-in capital | 13,700 | ||
| 83,500 | |||
On February 1 of the following year, a 12 percent stock dividend was issued. The market value of the stock on February 1 was $18 per share.
Required:
- For comparative purposes, prepare the stockholders’ equity section of the balance sheet (a) immediately before the stock dividend and (b) immediately after the stock dividend.
Transcribed Image Text:On December 31, the stockholders' equity section of the balance sheet of R & B Corporation reflected the following:
Common stock (par $10; authorized 61,700 shares, outstanding 26,700 shares) $267,000
Additional paid-in capital
Retained earnings
13,700
83,500
On February 1 of the following year, a 12 percent stock dividend was issued. The market value of the stock on February 1 was $18 per
share.
Required:
1. For comparative purposes, prepare the stockholders' equity section of the balance sheet (a) immediately before the stock dividend
and (b) immediately after the stock dividend.
Stockholders' Equity
Before
Stock
Dividend
Stock
Dividend
After
Stock
Dividend
Contributed Capital:
Total Contributed Capital
Total Stockholders' Equity
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