Anonymous
Anonymous asked in Business & FinanceInvesting · 1 decade ago

Help with Stockholder's Equity Problem?

Common stock--$5 par value, 375,000 shares authorized, 150,000 shares issued and outstanding $ 750,000

Contributed capital in excess of par value,

common stock 352,500

Total contributed capital 1,102,500

Retained earnings 633,000

Total stockholders' equity 1,735,500

April 2, Cataline declares and distributes a 10% stock dividend. Stock's per share on April 2 is $25. Prepare stockholders' equity section immediately after the stock dividend. So this is what I have so far....

Stockholders' Equity (after dividend)

Common stock -- $25 par value, 375,000 shares authorized,

150,000 shares issued and outstanding.....................750,000

Common stock dividend distributable -- 25 shares.........30,000

Contributed capital in excess of par value, common stock

Total contributed capital..................................................

Retained earnings.........................375,000

Update:

Please help me with this...I am struggling bad and my teacher keeps telling me to study the material...I have been but I am not understanding some of the concepts of figuring the numbers....The example makes absolutely no sense to me at all as I thought I had it down then the example lost me!!!

1 Answer

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  • 1 decade ago
    Favorite Answer

    go back and re-read the section on dividends; what is a dividend, and where does it come from? how is the journal entry prepared (debit what and credit what)?

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