QS 21-5 Accounting for small stock dividends [LO3]

The stockholders' equity section of Jun Company's balance sheet as of April 1 follows. On April 2, Jun declares and distributes a 10% stock dividend. The stock's per share market value on April 2 is $20 (prior to the dividend).

Common stock$5 par value, 375,000 shares authorized, 200,000 shares issued and outstanding $ 1,000,000 Paid-in capital in excess of par value, common stock 600,000 Retained earnings 833,000 Total stockholders' equity $ 2,433,000