The stockholders equity section of Jun Companys balance shee

The stockholders\' equity section of Jun Company\'s balance sheet as of April 1 follows. On April 2, Jun declares and distributes a 15% stock dividend. The stock\'s per share market value on April 2 is $15 (prior to the dividend). Common stock-$5 par value, 435,000 shares authorized, 230,000 shares issued and outstanding $1,150,000 Paid-in capital in excess of par value, common stock 550,000 863,000 $2,563,000 Retained earnings Total stockholders\' equity Prepare the stockholders\' equity section immediately after the stock dividend. JUN COMPANY Stockholders\' Equity April 2 (after stock dividend) Common stock Paid-in capital in excess of par value, common stock Total paid-in capital Total stockholders\' equity

Solution

Common Stock (230000 * 115%) * 5

1322500

Paid in Capital in excess of Par value, common stock (550000 + {34500 * 10})

895000

Total paid in capital

2217500

Retained Earning (863000 – {34500 * 15})

345500

Total stockholder Equity

2563000

Common Stock (230000 * 115%) * 5	1322500
Paid in Capital in excess of Par value, common stock (550000 + {34500 * 10})	895000
Total paid in capital	2217500
Retained Earning (863000 – {34500 * 15})	345500
Total stockholder Equity	2563000