Accounting for Stock Dividends: Jason Company had 300,000 shares outstanding on
ID: 2497791 • Letter: A
Question
Accounting for Stock Dividends:
Jason Company had 300,000 shares outstanding on January 1, Year 4. Jason had these owners’ equity balances on that date:
Contributed Capital
$3,000,000
Retained Earnings
$2,800,000
On January 1, Year 4, the firm distributed a 10% stock dividend when the fair market value was $16 per share.
Required: Determine the proper balances in these accounts after this stock dividend was distributed:
$___________Contributed Capital
$___________ Retained Earnings
Contributed Capital
$3,000,000
Retained Earnings
$2,800,000
Explanation / Answer
Accounting for Stock Dividends: Jason Company had 300,000 shares outstanding on