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Effect of a stock dividend on the equity accounts

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Reference no: EM133111411

Consider the following data:

Amount ($)

Common stock ($1 par value) 400,000

Capital surplus 900,000

Retained earnings 5,000,000

TOTAL OWNERS' EQUITY 6,300,000

Current market price of shares = $51 per share.

What will be the effect of a 10% stock dividend on the equity accounts? Supply the revised figures for all line items after the dividend.

Reference no: EM133111411

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