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Problem 10-05

Jackson Enterprises has the following capital (equity) accounts:

Common stock ($2 par; 150,000 shares outstanding)	$	300,000
Additional paid-in capital		450,000
Retained earnings		275,000

The board of directors has declared a 20 percent stock dividend on January 1 and a $0.30 cash dividend on March 1. What changes occur in the capital accounts after each transaction if the price of the stock is $4? Round the number of shares outstanding to the nearest whole number and the other answers to the nearest dollar.

The impact of the 20 percent stock dividend:

Common stock ($ par; shares outstanding)		$
Additional paid-in capital		$
Retained earnings		$

The impact of the $0.30 a share cash dividend:

Common stock ($ par; shares outstanding)		$
Additional paid-in capital		$
Retained earnings		$