The stockholders equity section of Jun Companys balance sheet as of April 1 follows. On April 2,

Question:

The stockholders’ equity section of Jun Company’s 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). Prepare the stockholders’ equity section immediately after the stock dividend.
— $ 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

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...