On June 30, 2020, when ABC shares were selling for $ 65 each, the equity accounts had the following balances:               Common shares (par value $ 50: 50,000 issued) $ 2,500,000                Capital contributed in excess of par value 600,000                Retained earnings 4,200,000 A 100% share dividend is declared and distributed, the balance of the Common Shares account after recording the dividend will be: a. $2,500,000 b. $7,300,000 c. $3,100,000 d. $5,000,000

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 84PSA: Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following...
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On June 30, 2020, when ABC shares were selling for $ 65 each, the equity accounts had the following balances:            

  Common shares (par value $ 50: 50,000 issued) $ 2,500,000              

 Capital contributed in excess of par value 600,000               

Retained earnings 4,200,000

A 100% share dividend is declared and distributed, the balance of the Common Shares account after recording the dividend will be:

a. $2,500,000
b. $7,300,000
c. $3,100,000
d. $5,000,000
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