On October 1, Little Tommy Corporations stockholders equity is as follows. Common stock, $5 par value.............. $400,000

Question:

On October 1, Little Tommy 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 Tommy declares and distributes a 10% stock when the market value 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
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