On June 30,2018,Padres,Inc.showed the following data on the equity section of their balance sheet: $$\begin{array} { | l | r | }
\hline \text { Stockholders' Equity } & \
\hline \text { Common Stock, } \$ 1 \text { par; 197,000 shares authorized, } & \
146,000 \text { shares issued and outstanding } & \$ 146,000 \
\hline \text { Paid-In Capital in Excess of Par-Common } & \$ 263,000 \
\hline \text { Retained Earnings } & \$ 958,000 \
\hline \text { Total Stockholder's Equity } & \$ 1,367,000 \
\hline
\end{array}$$ On July 1,2018,the company declared and distributed a 10% stock dividend.The market value of the stock at that time was $15 per share.Following this transaction,what is the number of shares issued?
A) 86,500
B) 297,300
C) 160,600
D) 146,000

Question

On June 30,2018,Padres,Inc.showed the following data on the equity section of their balance sheet: $$\begin{array} { | l | r | } 
\hline \text { Stockholders' Equity } & \
\hline \text { Common Stock, } \$ 1 \text { par; 197,000 shares authorized, } & \
146,000 \text { shares issued and outstanding } & \$ 146,000 \
\hline \text { Paid-In Capital in Excess of Par-Common } & \$ 263,000 \
\hline \text { Retained Earnings } & \$ 958,000 \
\hline \text { Total Stockholder's Equity } & \$ 1,367,000 \
\hline
\end{array}$$ On July 1,2018,the company declared and distributed a 10% stock dividend.The market value of the stock at that time was $15 per share.Following this transaction,what is the number of shares issued?
A) 86,500
B) 297,300
C) 160,600
D) 146,000

Quizplus · Accepted Answer

The company declared a 10% stock dividend on 146,000 shares, which results in an additional 14,600 shares being issued (10% of 146,000). Therefore, the new total number of shares issued is 146,000 + 14,600 = 160,600.

On June 30,2018,Padres,Inc On July 1,2018,the Company Declared and Distributed a 10% Stock