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Sun Energy Company has the following capital section in its balance sheet. Its stock is currently selling for $8 per share. Common stock (40,000 shares)
Sun Energy Company has the following capital section in its balance sheet. Its stock is currently selling for $8 per share.
Common stock (40,000 shares) | $80,000 |
Retained earnings | 170,000 |
$250,000 | |
The firm intends to first declare a 15 percent stock dividend and then pay a $0.25 cash dividend (which also causes a reduction of retained earnings). (Omit $ sign in your response.)
Show the capital section of the balance sheet after the first transaction and then after the second transaction.
Sun Energy Company | |
After 1st transaction | |
Common stock (46,000 shares) | $ |
Retained earnings | |
$ | |
Sun Energy Company | |
After 2nd transaction | |
Common stock (46,000 shares) | $ |
Retained earnings | |
$ | |
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