On June 30, 2018, Samuel, Inc. showed the following data on the equity section of their balance sheet:Stockholders' equityCommon stock, $1 par; 199,000 shares authorized, 157,000shares issued and outstanding $157,000Paid-In Capital in Excess of ParCommon $262,000Retained Earnings 957,000Total Stockholders' Equity $1,376,000On July 1, 2018, the company declared and distributed a 6% stock dividend. The market value of the stockat that time was $14 per share. Following this transaction, what is total stockholders' equity? A) $1,376,000 B) $1,302,860 C) $1,208,840 D) $1,558,140

Question

Gigi

Business

20 January, 04:51

On June 30, 2018, Samuel, Inc. showed the following data on the equity section of their balance sheet:Stockholders' equityCommon stock, $1 par; 199,000 shares authorized, 157,000shares issued and outstanding $157,000Paid-In Capital in Excess of ParCommon $262,000Retained Earnings 957,000Total Stockholders' Equity $1,376,000On July 1, 2018, the company declared and distributed a 6% stock dividend. The market value of the stockat that time was $14 per share. Following this transaction, what is total stockholders' equity? A) $1,376,000 B) $1,302,860 C) $1,208,840 D) $1,558,140

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Lexie Sharp · Answer 1

A) $1,376,000

Explanation:

The value of the equity doesn't change, it only redistribute the amount in the Retained Earnings between the Capital Surplus (thi account reflect the increase in the value of shares) and the Common Stock that represents the pair valur of the stocks.