The P Company has the following capital structure: Common stock ($5 par, 250,000 shares) $1,250,000 Contributed capital...

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The P Company has the following capital structure:
Common stock ($5 par, 250,000 shares) $1,250,000
Contributed capital in excess of par $5,000,000
Retained earnings $4,000,000
The company declares a 10 percent stock dividend. The pre-stockdividend market price of the company’s stock is $50. Determine thebalance in the retained earnings account after the stock dividend.Determine the balance in the common stock account after the stockdividend.

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The P Company has the following capital structure:Common stock ($5 par, 250,000 shares) $1,250,000Contributed capital in excess of par $5,000,000Retained earnings $4,000,000The company declares a 10 percent stock dividend. The pre-stockdividend market price of the company’s stock is $50. Determine thebalance in the retained earnings account after the stock dividend.Determine the balance in the common stock account after the stockdividend.