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The company with the common equity accounts shown here has declared a 10 percent stock dividend...

The company with the common equity accounts shown here has declared a 10 percent stock dividend at a time when the market value of its stock is $64 per share.

Common stock ($1 par value) $ 430,000
Capital surplus 1,551,000
Retained earnings 3,870,000
Total owners’ equity $ 5,851,000


Show the new equity account balances after the stock dividend distribution. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

Common stock $
Capital surplus
Retained earnings
Total owners’ equity $
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Answer #1
Number of stock 430000
Stock dividend 10%
Number of Sstockk dividend 43000
Multiply: Market price 64
Stock dividend amount 2752000
Credited to Common Stock 43000
Credited to Capital surplus 2709000
Total amount debited to RE 2752000
Balance after Stock dividend:
Common Stock (430000+43000) 473000
Capital Surplus (1551000+2709000) 4260000
Retained earnings (3870000-2752000) 1118000
Total Owner's equity 5851000
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