Question
The Stockholders' Equity section of the balance sheet for Scuba Gear Corporation appeared as follows before its recent stock dividend: Common stock, $5 par, 100,000
The Stockholders' Equity section of the balance sheet for Scuba Gear Corporation appeared as follows before its recent stock dividend: Common stock, $5 par, 100,000 shares issued and outstanding Additional paid-in capital Retained earnings Total stockholders' equity Scuba Gear declared a 10% stock dividend when the market price per share was $8. After the stock dividend was distributed, the components of the stockholders' equity section were: Common Stock O a Ob. C. $580,000 $550,000 $550,000 Additional Pail1- In Capital $645,000 $675,000 $ 500,000 100,000 725,000 $1,325,000 Retained Earnings $100.000 $100,000 $645,000 Od. There would be no change in the components of stockholders' equity. $130,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started