2.99 See Answer

Question: The company with the common equity accounts


The company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $64 per share. What effects will the distribution of the stock dividend have on the equity accounts?

Common stock ($1 par value) ……………………………….. $ 225,000
Capital surplus ……………………………………………………….. 535,000
Retained earnings ………………………………………………… 2,968,500
Total owners’ equity …………………………………………… $3,728,500


2.99

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