The company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $35 per share. What effects on the equity accounts will the distribution of the stock dividend have? Common stock ($1 par value) $ 406,000 Capital surplus 1,340,000 Retained earnings 3,427,000 Total owners’ equity $5,173,000

The company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $35 per share. What effects on the equity accounts will the distribution of the stock dividend have? Common stock ($1 par value) $ 406,000 Capital surplus 1,340,000 Retained earnings 3,427,000 Total owners’ equity $5,173,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 12MCQ

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