on december 31 2013 the stockholders equity section of the balance sheet of r b corp 3387195

On December 31, 2013, the stockholders equity section of the balance sheet of R & B Corporation reflected the following: Common stock (par $10; authorized 60,000 shares, outstanding 25,000 shares) ..$250,000 Additional paid-in capital …………………………………………………………. 12,000 Retained earnings …………………………………………………………………. 75,000 On February 1, 2014, the board of directors declared a 12 percent stock dividend to be issued April 30, 2014. The market value of the stock on February 1, 2014, was $18 per share. Required: 1. For comparative purposes, prepare the stockholders equity section of the balance sheet (a) Immediately before the stock dividend and (b) immediately after the stock dividend. 2. Explain the effects of this stock dividend on the assets, liabilities, and stockholders equity. 3. How would your answers to requirements 1 and 2 change if the stock dividend were 100%?

 

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