Reference no: EM131760450

Problem: Stockholders Equity

On March 1, Pluto Corporation declared and issued a 10% stock dividend on its 200,000 outstanding shares of $3 par value common stock. On September 1, Pluto declared a 3-for-1 stock slit and changed its par value accordingly. The market value of Pluto's stock was $20 per share on March 1 and $24 per share on September 1. On February 28, Pluto's stockholders' equity appeared as follows:

Stockholders Equity February 28:

Common stock (200,000 $3 par shares issued      $600,000

Paid-in capital in excess of par                            1,800,000

Contributed capital                                             2,400,000

Retained earnings                                              1,600,000

Total Stockholders' equity                                   $4,000,000

Required: Prepare, in good form, the stockholders' equity section after the stock split. No partial credit will be awarded without detailed computations.