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.