On June 30,2017,Roger,Inc.showed the following data on the equity section of their balance sheet: $$\begin{array} { | l | r | }
\hline \text { Stockholders' Equity } & \
\hline \text { Common Stock, } \$ 1 \text { par; 202,000 shares authorized, } & \
150,000 \text { shares issued and outstanding } & \$ 150,000 \
\hline \text { Paid-In Capital in Excess of Par-Common } & \$ 260,000 \
\hline \text { Retained Earnings } & \$ 946,000 \
\hline \text { Total Stockholder's Equity } & \$ 1,356,000 \
\hline
\end{array}$$ On July 1,2017,the company declared and distributed a 9% stock dividend.The market value of the stock at that time was $20 per share.Following this transaction,what is the balance of Common Stock?

Question

On June 30,2017,Roger,Inc.showed the following data on the equity section of their balance sheet: $$\begin{array} { | l | r | } 
\hline \text { Stockholders' Equity } & \
\hline \text { Common Stock, } \$ 1 \text { par; 202,000 shares authorized, } & \
150,000 \text { shares issued and outstanding } & \$ 150,000 \
\hline \text { Paid-In Capital in Excess of Par-Common } & \$ 260,000 \
\hline \text { Retained Earnings } & \$ 946,000 \
\hline \text { Total Stockholder's Equity } & \$ 1,356,000 \
\hline
\end{array}$$ On July 1,2017,the company declared and distributed a 9% stock dividend.The market value of the stock at that time was $20 per share.Following this transaction,what is the balance of Common Stock?

Quizplus · Accepted Answer

The 9% stock dividend on 150,000 shares is 13,500 shares (150,000 * 0.09). The par value of these shares is $1, so the increase in Common Stock is $13,500. The new balance is $150,000 + $13,500 = $163,500.

On June 30,2017,Roger,Inc On July 1,2017,the Company Declared and Distributed a 9% Stock