On June 30,2018,Ginger,Inc.showed the following data on the equity section of their balance sheet: On July 1,2018,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 30,2018,Ginger,Inc.showed the following data on the equity section of their balance sheet:  On July 1,2018,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 new balance in the Common stock account = Common Stock + Stock dividend distributable = $150,000 + [(150,000 × 9%)× $1] = $163,500