Cash and Stock Dividends

. Prepare the stockholders’ equity section of Tranquil’s balance sheet at December 31, 2000.

Ballet Company reported the following stockholders’ equity balances at December 31, 2000:

Immediately after the balance sheet was prepared, Ballet Company declared a cash dividend of $2 per share, followed by a 6 percent stock dividend. Ballet’s common stock was selling at $28 per share on December 31, 2000.
What was the amount of the cash dividend paid by Ballet?
What was the number of shares issued in the stock dividend?
_ What was the amount of the increase in the total par value of shares outstanding as a result of the cash and stock dividends?

d. What was the amount of the increase in additional paid-in capital as a result of the cash and stock dividends?

e. What was the decrease in retained earnings as a result of the cash and stock dividends?

f. What was the change in total stockholders’ equity as a result of the cash and stock dividends?

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Common stock ($10 par; 90,000 shares authorized; 40,000 shares issued; 25,000 shares outstanding) Additional paid-in capital Retained earnings Total Less: Treasury stock (15,000 shares, at cost) Total stockholders' equity $ 400,000 260,000 595,000 $1,255,000 (345,000) $ 910,000