Reference no: EM132784745

Problem 1: On January 1, Splish Brothers Inc. had 820000 shares of $10 par value common stock outstanding. On March 31 the company declared a 10% stock dividend. Market value of the stock was $15/share. As a result of this event,

Option 1: Splish's Paid-in Capital in Excess of Par Value account increased $410000.

Option 2: Splish's total stockholders' equity was unaffected.

Option 3: Splish's Stock Dividends account increased $1230000.

Option 4: All of these answer choices are correct.

Problem 2: The Paid-in Capital in Excess of Par Value is increased in the accounting records when

Option 1: the number of shares issued exceeds par value.

Option 2: the stated value of capital stock is greater than the par value.

Option 3: the market value of the stock rises above par value.

Option 4: capital stock is issued at an amount greater than par value.