Issuance of stock for cash and noncash assets (Learning Objective 3)

10–15 min.

On December 1, Kadmous Corporation declares and distributes a 15% stock dividend when the market value of the stock is $16 per share. Indicate the balances in the stockholders’

equity accounts after the stock dividend has been distributed if its stockholders’

equity section is as follows:

Common stock, $8 par value ..............................................

Paid-in capital in excess of par—Common Stock ................

Retained earnings ................................................................

Total stockholders’ equity ....................................................

$ 800,000 200,000 400,000

$1,400,000 AppendixLO1