Alexander, Inc , declared and distributed a 10 percent stock dividend on its 700,000 shares of outstanding $5 par value common stock when the stock was selling for $12 per share The out standing shares had originally been sold at $8 per share The balance in retained earnings before the declaration ...

ALEXANDER INC Stockholders Equity Section of Balance Sheet Date Common st ...

Alexander, Inc., declared and distributed a 10 percent stock dividend on its 700,000 shares of outstanding $5

Question:

Alexander, Inc., declared and distributed a 10 percent stock on its 700,000 shares of outstanding $5 when the stock was selling for $12 per share. The out-standing shares had originally been sold at $8 per share. The balance in retained earnings before the declaration of the stock but after the addition of the current year’s net income, was $995,000. Prepare the stockholders’ section of Alexander’s to reflect these facts.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...