On July 1, 2003, Sanford Corporation s balance sheet reported the following account balances in the stockholders equity section:
|
Common stock, $5 par |
$150,000 |
|
Paid in capital in excess of par, common stock |
20,000 |
|
Retained earnings |
180,000 |
|
Total stockholders equity |
$350,000 |
On August 31, 2003, Sanford s board of directors declared and issued a 10% stock dividend. The market value on August 31 is $12 per share.
1. Compare the book value per share before and after the issuance of the stock dividend.
2. Compute the new balance for all stockholders equity accounts after the stock dividend.