On December 31,2010,when the Conn Company's stock was selling at $36 per share,its capital accounts were as follows Capital stock par value $20,
100,000 shares issued) $2,000,000
Premium on capital stock 800,000
Retained Earnings 4,550,000
If a 100 percent stock dividend were declared and the par value per share remained at
$20

Question

Quizplus · Accepted Answer

A 100% stock dividend means issuing additional shares equal to the number of shares currently outstanding. This would double the number of shares, increasing the capital stock account to $4,000,000 (200,000 shares at $20 par value).

On December 31,2010,when the Conn Company's Stock Was Selling at $36