Reference no: EM133145330
Question - On October 1, Carla Vista Corporation's stockholders' equity is as follows.
Common stock, $7 par value $538,300
Paid-in capital in excess of par-common stock 22,000
Retained earnings 171,000
Total stockholders' equity $731,300
On October 1, Carla Vista declares and distributes a 10% stock dividend when the market price of the stock is $15 per share.
Required - Compute the par value per share (1) before the stock dividend and (2) after the stock dividend.
Indicate the balances in the three stockholders' equity accounts after the stock dividend shares have been distributed.