On June 30, 2017, Martin Brothers, Inc. showed the following data on the equity section of their balance sheet: Stockholders' Equity Common Stock, $1 par; 197,000 shares authorized, 146,000 shares issued and outstanding$146,000Paid-In Capital in Excess of Par—Common$271,000Retained Earnings941,000Total Stockholder's Equity$1,358,000 On July 1, 2017, the company declared and distributed a 8% stock dividend. The market value of the stock at that time was $17 per share. Following this transaction, what is the balance of Paid-In Capital in Excess of Par—Common?

Number of shares distributed as stock dividend on July 1, 2017 = 146,000 shares x 8% = 11,680 shares

Answered: On June 30, 2017, Martin Brothers, Inc.…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter11: Stockholders' Equity

Section: Chapter Questions

Problem 11.7E

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On June 30, 2017, Martin Brothers, Inc. showed the following data on the equity section of their balance sheet:

Stockholders' Equity
Common Stock, $1 par; 197,000 shares authorized, 146,000 shares issued and outstanding	$146,000
Paid-In Capital in Excess of Par—Common	$271,000
Retained Earnings	941,000
Total Stockholder's Equity	$1,358,000

On July 1, 2017, the company declared and distributed a 8% stock dividend. The market value of the stock at that time was $17 per share. Following this transaction, what is the balance of Paid-In Capital in Excess of Par—Common?

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