Reference no: EM131251830
On October 1, Little Bobby Corporation's stockholders' equity is as follows.
Common stock, $5 par value $400,000
Paid-in capital in excess of par- common stock 25,000
Retained earnings 155,000
Total stockholders' equity $580,000
(a) Compute the par value per share (1) before the stock dividend and (2) after the stock dividend.
(b) Indicate the balances in three stockholders'' equity accounts after the stock dividend shares have been distributed.
On January 1, 2014, Eddy Corporation had retained earnings of $650,000. During the year, Eddy had the following selected transactions.
1. Declared cash dividends $120,000.
2. Corrected overstatement of 2013 net income because of depreciation error $40,000.
3. Earned net income $350,000.
4. Declared stock dividends $90,000.
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