Exercise 14-5 (Part level Submission)

On October 1, Little Bobby Corporation's stockholders' equity is as follows.

Common stock, $7par value$539,700Paid-in capital in excess of parcommon stock20,250Retained earnings158,460Total stockholders' equity$718,410

On October 1, Little Bobby declares and distributes a10% stock dividend when the market price of the stock is $15per share.

Exercise 14-5 (Part level Submission)

On October 1, Little Bobby Corporation's stockholders' equity is as follows.

Common stock, $7par value$539,700Paid-in capital in excess of parcommon stock20,250Retained earnings158,460Total stockholders' equity$718,410

On October 1, Little Bobby declares and distributes a10% stock dividend when the market price of the stock is $15per share.

(a)

Your answer is correct. Compute the par value per share (1) before the stock dividend and (2) after the stock dividend.

Par value before the stock dividend $7

Par value after the stock dividend $7

Show Solution

Show Answer

Link to Text

Attempts: 1 of 3 used

(b)

Indicate the balances in the three stockholders' equity accounts after the stock dividend shares have been distributed.

Common stock$

Paid-in capital in excess of par value$

Retained earnings$