...January 1, 2006, appeared as foll? The stockholders' equity section of the Worthy Company's balance sheet as of January 1, 2006, appeared as follows:
Common stock ($10 par, 40,000 shared issued & out) $400,000
Capital in Excess of Par 100,000
Retained earnings 400,000
Total Stockholder's Equity 900,000
The company declared and distributed a 10% stock dividend to common stockholder's on January 30, 2006 when the stock was selling for $30 per share.
Required:
Record this transaction in general journal form.
Develop the stockholders' equity section of the balance sheet after the stock dividend was issued.
c. What effect did these transactions have on total stockholders' equity? _____________
Common stock ($10 par, 40,000 shared issued & out) $400,000
Capital in Excess of Par 100,000
Retained earnings 400,000
Total Stockholder's Equity 900,000
The company declared and distributed a 10% stock dividend to common stockholder's on January 30, 2006 when the stock was selling for $30 per share.
Required:
Record this transaction in general journal form.
Develop the stockholders' equity section of the balance sheet after the stock dividend was issued.
c. What effect did these transactions have on total stockholders' equity? _____________