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Question - The stockholders' equity section of Atari Company's balance sheet as of April 1 follows. On April 2, Atari declares and distributes a 10% stock dividend. The stock's per share market value on April 2 is $18 (prior to the dividend). Prepare the stockholders' equity section immediately after the stock dividend.
Common stock-$5 par value, 375,000 shares authorized, 200,000 shares issued and outstanding
$1,000,000
Paid-in capital in excess of par value, common stock
600,000
Retained earnings
833,000
Total stockholders' equity
$2,433,000
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