Ramos Corporation reported the following equity section on its current balance sheet.The common stock is currently selling for $18.00 per share. $$\begin{array} { | l | r | }
\hline \begin{array} { l }
\text { Common Stock, } \$ 5 \text { par, } 194,000 \text { shares authorized, } 143,000 \text { shares issued } \
\text { and outstanding }
\end{array} & \$ 715,000 \
\hline \text { Paid-In Capital in Excess of Par-Common } & 130,000 \
\hline \text { Retained Earnings } & 301,000 \
\hline \text { Total Stockholders' Equity } & \$ 1,146,000 \
\hline
\end{array}$$ After the declaration and distribution of a 20% stock dividend,what is the total number of common shares issued?

Question

Ramos Corporation reported the following equity section on its current balance sheet.The common stock is currently selling for $18.00 per share. $$\begin{array} { | l | r | } 
\hline \begin{array} { l } 
\text { Common Stock, } \$ 5 \text { par, } 194,000 \text { shares authorized, } 143,000 \text { shares issued } \
\text { and outstanding }
\end{array} & \$ 715,000 \
\hline \text { Paid-In Capital in Excess of Par-Common } & 130,000 \
\hline \text { Retained Earnings } & 301,000 \
\hline \text { Total Stockholders' Equity } & \$ 1,146,000 \
\hline
\end{array}$$ After the declaration and distribution of a 20% stock dividend,what is the total number of common shares issued?

Quizplus · Accepted Answer

A 20% stock dividend on 143,000 shares results in an additional 28,600 shares (143,000 * 0.20). Adding these to the original 143,000 shares gives a total of 171,600 shares issued.

Ramos Corporation Reported the Following Equity Section on Its Current