Accounting
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On October 1, Little Bobby Corporation's stockholders' equity is as follows.
| Common stock, $5 par value | $384,000 |
| Paid-in capital in excess of par – common stock | 29,000 |
| Retained earnings | 170,000 |
| Total stockholder's equity | $583,000 |
On October 1, Little Bobby declares and distributes a 10% stock dividend when the market price of the stock is $15 per share.
Required:
a. Compute the par value per share
(1) before the stock dividend and
(2) after the stock dividend.
| Par value before the stock dividend | $ |
| Par value after the stock dividend | $ |
b. Indicate the balances in the three stockholders' equity accounts after the stock dividend shares have been distributed.
| Common stock | $ |
| Paid-in capital in excess of par value | $ |
| Retained earnings |
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