Retained earnings account after the stock dividend

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Reference no: EM131937308

The P Company has the following capital structure:

Common stock ($5 par, 250,000 shares) $1,250,000

Contributed capital in excess of par $5,000,000

Retained earnings $4,000,000

The company declares a 10 percent stock dividend. The pre-stock dividend market price of the company’s stock is $50. Determine the balance in the retained earnings account after the stock dividend. Determine the balance in the common stock account after the stock dividend.

Reference no: EM131937308

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