On June 30, 2014, when Vienna Inc.'s shares were selling at $65 per share, its capital accounts were as follows: Common Shares, no par, 60,000 shares issued and outstanding .................................................................$2,400,000 Retained Earnings ....................................................................3,600,000 If a 5% stock dividend were declared and distributed, the Common Shares account balance would be

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A 5% stock dividend on 60,000 shares is 3,000 additional shares (60,000 * 0.05). At $65 per share, this increases the Common Shares account by $195,000 (3,000 * $65), resulting in a new balance of $2,595,000 ($2,400,000 + $195,000).

On June 30, 2014, When Vienna Inc