Problem 10-05

Jackson Enterprises has the following capital (equity) accounts:

Common stock ($1 par; 200,000 shares outstanding)	$	200,000
Additional paid-in capital		250,000
Retained earnings		275,000

The board of directors has declared a 20 percent stock dividend on January 1 and a $0.20 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 $0.20 a share cash dividend:

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