On June 30,2017,Rangers,Inc.showed the following data on the equity section of their balance sheet: $$\begin{array} { | l | r | }
\hline \text { Stockholders' Equity } & \
\hline \text { Common Stock, } \$ 1 \text { par; } 197,000 \text { shares } & \
\text { authorized,146,000 shares issued and outstanding } & \$ 146,000 \
\hline \text { Paid-In Capital in Excess of Par-Common } & \$ 263,000 \
\hline \text { Retained Earnings } & \$ 958,000 \
\hline \text { Total Stockholder's Equity } & \$ 1,367,000 \
\hline
\end{array}$$ On July 1,2017,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?

Question

On June 30,2017,Rangers,Inc.showed the following data on the equity section of their balance sheet: $$\begin{array} { | l | r | } 
\hline \text { Stockholders' Equity } & \
\hline \text { Common Stock, } \$ 1 \text { par; } 197,000 \text { shares } & \
\text { authorized,146,000 shares issued and outstanding } & \$ 146,000 \
\hline \text { Paid-In Capital in Excess of Par-Common } & \$ 263,000 \
\hline \text { Retained Earnings } & \$ 958,000 \
\hline \text { Total Stockholder's Equity } & \$ 1,367,000 \
\hline
\end{array}$$ On July 1,2017,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?

Quizplus · Accepted Answer

A 10% stock dividend on 146,000 shares results in an additional 14,600 shares (10% of 146,000). Therefore, the new total number of shares issued is 160,600 (146,000 + 14,600).

On June 30,2017,Rangers,Inc On July 1,2017,the Company Declared and Distributed a 10% Stock