Problem 10-05

Jackson Enterprises has the following capital (equity) accounts:

Common stock ($2 par; 200,000 shares outstanding)	$	400,000
Additional paid-in capital		300,000
Retained earnings		250,000

The board of directors has declared a 15 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 $5? Round the number of shares outstanding to the nearest whole number and the other answers to the nearest dollar.

The impact of the 15 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		$ __________