On October 1, Little Bobby Corporations stockholders equity is as follows. Common stock, $5 par value ............

Question:

On October 1, Little Bobby Corporation’s stockholders’ equity is as follows.
Common stock, $5 ............ $400,000
Paid-in capital in excess of par—common stock ... 25,000
Retained earnings ............... 155,000
Total stockholders’ equity ........... $580,000
On October 1, Little Bobby declares and distributes a 10% stock when the market price of the stock is $15 per share.

Instructions
(a) Compute the per share (1) before the stock and (2) after the stock Indicate the balances in the three stockholders’ equity accounts after the stock shares have been distributed.

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,...