Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. samuel's has 7,000 shares of stock outstanding wit

Samuel's has 7,000 shares of stock outstanding with a par value of $1.00 per share and...

70.2K

Verified Solution

Question

Finance

Samuel's has 7,000 shares of stock outstanding with a par valueof $1.00 per share and a market value of $12 per share. The balancesheet shows $7,000 in the common stock account, $58,000 in thecapital in excess of par account and $32,500 in the retainedearnings account. The firm just announced a 50% (large) stockdividend. What is the value of the capital in excess of par accountafter the dividend?

Answer & Explanation Solved by verified expert
3.8 Ratings (600 Votes)
Stock dividend is declared from the retained earnings of the company and so when stock dividend is declared the retained earnings balance would reduce and the common stock and paid in capital    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Samuel's has 7,000 shares of stock outstanding with a par valueof $1.00 per share and a market value of $12 per share. The balancesheet shows $7,000 in the common stock account, $58,000 in thecapital in excess of par account and $32,500 in the retainedearnings account. The firm just announced a 50% (large) stockdividend. What is the value of the capital in excess of par accountafter the dividend?

Other questions asked by students

Basic Math
1.2K views

Simplify Assume that all variables represent positive values and that the radicand is nonnegative x...

Chemistry
1.2K views

3) The following “cycle of copper” experiment is performed in some general chemistry laboratories. The series...

Biology
1.2K views

discuss the constitution that makes up whole blood

Geometry
1.2K views

The parent function of a quadratic f x x 2 is vertically compressed by a...

Basic Math
1.2K views

Find the geometric means in the following sequence.-14, ?, ?, ?, ?, -235,29898, 686, 4,802,...

Statistics
1.2K views

You want to determine if the COVID 19 epidemic impacted salary You recruit 100 subjects...

Algebra
1.2K views

The probability that a 19 year old male in the United States will die within...

Algebra
1.2K views

Below are the average high temperatures for each month in Baltimore, Maryland.Month Jan...

Accounting
1.2K views

Autotech Corp. (Autotech) es una empresa pblica incorporada a nivel federal formada en 2012 para...

Accounting
1.2K views

Product Decisions Under Bottlenecked Operations Youngstown Glass Company manufactures three types of safety plate glass:...

Accounting
1.2K views

Camila Company has set the following standard cost per unit for direct materials and direct...

Accounting
1.2K views

Markups; cost-plus pricing The following is Talley Companys income statement for the past year. Sales...