16. Sun Energy Company has the following capital section in its balance sheet. Its stock is currently selling for $5 per share.

Common stock (100,000 shares at $1 per) ........ $100,000 Capital in excess of par ...................................... 100,000 Retained earnings ............................................... 200,000

$400,000 The firm intends to first declare a 10 percent stock dividend and then pay a 30-

cent cash dividend (which also causes a reduction of retained earnings). Show the capital section of the balance sheet after the first transaction and then after the second transaction.