The stockholders equity section of Platt Corporations balance sheet consists of common stock ($10 par) $1,000,000 and retained earnings $300,000 A 10 stock dividend (10,000 shares) is declared when the market value per share is $19 Show the before and after effects of the dividend on (a) The compon...

Before After Dividend Dividend a Stockholders equity Paidin c ...

The stockholders equity section of Platt Corporations balance sheet consists of common stock ($10 par) $1,000,000 and

Question:

The stockholders’ equity section of Platt Corporation’s consists of ($10 par) $1,000,000 and retained earnings $300,000. A 10% stock (10,000 shares) is declared when the market value per share is $19. Show the before and after effects of the on
(a) The components of stockholders’ equity and
(b) The shares outstanding.

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... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...