The stockholders’ equity section of O’Vear Corporation consists of Common stock ($10 par) $2,000,000 and Retained earnings $500,000. A 10% stock dividend (20,000 shares) is declared when the market value per share is $14. Show the before and after effects of the dividend on the following. The components of stockholders’ equity. Shares outstanding. Par value per share.

College Accounting, Chapters 1-27
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ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
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Problem 4CE: Prepare the stockholders equity section of the balance sheet based on the following account...
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The stockholders’ equity section of O’Vear Corporation consists of

  • Common stock ($10 par) $2,000,000 and
  • Retained earnings $500,000.

A 10% stock dividend (20,000 shares) is declared when the market value per share is $14. Show the before and after effects of the dividend on the following.

  • The components of stockholders’ equity.
  • Shares outstanding.
  • Par value per share.
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