The stockholders' equity section of the balance sheet for Pokagon Corporation appeared as follows before its recent stock dividend:
Common stock, $30 par, 10,000 shares issued and outstanding
$ 300,000
Additional paid-in capital - common
360,000
Retained earnings
450,000
Total stockholders' equity
$1,110,000
Pokagon declared a 10% stock dividend when the market price per share was $60. After the stock dividend was distributed, the components of the stockholders' equity section were:

Question

Quizplus · Accepted Answer

10,000 shares x 10% = 1,000 share stock dividend x $60 = $60,000
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The Stockholders' Equity Section of the Balance Sheet for Pokagon