The stockholders’ equity section of Zacman Company’s balance sheet as of April 1 follows. On April 2, Zacman declares and distributes a 10% stock dividend. The stock’s per share market value on April 2 is $25 (prior to the dividend). Prepare the stockholders’ equity section immediately after the stock dividend.
|
Common stock—$5 par value, 375,000 shares authorized, 150,000 shares issued and outstanding |
$ 750,000 |
|
Paid in capital in excess of par value, common stock |
352,500 |
|
Retained earnings |
633,000 |
|
Total stockholders’ equity |
$1,735,500 |