On November 1 2017 Taxton Corporation's stockholders' equity section is as follows: $\begin{array}{lr}
\text { Common stock, } \$ 10 \text { par value } &\$ 600,000 \
\text { Paid-in capital in excess of par } & 205,000 \
\text { Retained earnings } & \underline{240,000 }\
\text { Total stockholders' equity } & \underline{\$ 1,045,000}
\end{array}$
On November 1 Taxton declares and distributes a 15% stock dividend when the market value of the stock is $13 per share.
Instructions
Indicate the balances in the stockholders' equity accounts after the stock dividend has been distributed.

Question

On November 1 2017 Taxton Corporation's stockholders' equity section is as follows: $\begin{array}{lr}
\text { Common stock, } \$ 10 \text { par value } &\$ 600,000 \
\text { Paid-in capital in excess of par } & 205,000 \
\text { Retained earnings } &  \underline{240,000 }\
\text { Total stockholders' equity } &  \underline{\$ 1,045,000}
\end{array}$
 On November 1 Taxton declares and distributes a 15% stock dividend when the market value of the stock is $13 per share.
Instructions
Indicate the balances in the stockholders' equity accounts after the stock dividend has been distributed.

Quizplus · Accepted Answer

The Answer of On November 1 2017 Taxton Corporation's stockholders' equity section is as follows: $\begin{array}{lr}
\text { Common stock, } \$ 10 \text { par value } &\$ 600,000 \
\text { Paid-in capital in excess of par } & 205,000 \
\text { Retained earnings } &  \underline{240,000 }\
\text { Total stockholders' equity } &  \underline{\$ 1,045,000}
\end{array}$
 On November 1 Taxton declares and distributes a 15% stock dividend when the market value of the stock is $13 per share.
Instructions
Indicate the balances in the stockholders' equity accounts after the stock dividend has been distributed.

On November 1 2017 Taxton Corporation's Stockholders' Equity Section Is