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

Question:

On October 1, Venden 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 .................... 225,000
Total stockholders’ equity ................ $650,000
On October 1, Venden declares and distributes a 15% stock when the market price of the stock is $15 per share.

Instructions
(a) Compute the book value per share
(1) Before the stock
(2) After the stock (Round to two decimals)
(b) Indicate the balances in the three stockholders’ equity accounts after the stock shares have been distributed.

Dividend
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