Question - The Company with the common equity accounts shown here has declared a 12 percent stock dividend at a time when the market value of its stock is $35 per share. What effects on the equity accounts will the distribution of the stock dividend have?
|
Common stock ($1 per value)
|
$198,000
|
|
Capital surplus
|
1,753,00
|
|
Retained earnings
|
3,500,700
|
|
Total owners' equity
|
$5,451,700
|