Question

# The company with the common equity accounts shown here has declared a 20 percent stock dividend...

 The company with the common equity accounts shown here has declared a 20 percent stock dividend when the market value of its stock is \$30 per share.
 Common stock (\$1 par value) \$ 400,000 Capital surplus 849,000 Retained earnings 3,750,800 Total owners' equity \$ 4,999,800
 What would be the number of shares outstanding, after the distribution of the stock dividend? (Do not round intermediate calculations.)
 New shares outstanding
 What would the equity accounts be after the stock dividend? (Do not round intermediate calculations.)
 Common stock \$ Capital surplus Retained earnings Total owners' equity \$

Before Stock Dividend:

No. of Stock Outstanding = Common Stock / Value per stock
No. of Stock Outstanding = \$400,000 / \$1
No. of Stock Outstanding = 400,000

No. of Stock Dividend = 400,000 * 20%
No. of Stock Dividend = 80,000

After Stock Dividend:

No. of Stock Outstanding = 400,000 + 80,000
No. of Stock Outstanding = 480,000