QS 13-5The stockholders’ equity section of Catalina Company’s balance sheet as of April 1 follows. On April 2,

Question

Catalina declares and distributes a 10% stock dividend. The stock’s per share market value on April 2

is $25. 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

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

Answer 1

Do your own homework

Answer 2

Common stock—$5 par value, 375,000 shares

authorized, 150,000 shares issued and outstanding $825,000

Contributed capital in excess of par value, common stock $652,500

Total contributed capital $1,477,500

Retained earnings $258,000

Total stockholders’ equity $1,735,500