Question-based on, "compute par value". I have tried it but no luck. On October 1, Oriole Corporation's stockholders' equity is as follows.Common stock, $7 par value$535,500Paid-in capital in excess of par-common stock30,000Retained earnings167,000Total stockholders' equity$732,500On October 1, Oriole declares and distributes a 10% stock dividend when the market price of the stock is $14 per share. Compute the par value per share (1) before the stock dividend and (2) after the stock dividend.Par value before the stock dividend2$Par value after the stock dividend2$eTexthook and Media

Answered: On October 1, Oriole Corporation's…

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 5MCQ

See similar textbooks

Related questions

Concept explainers

Question

Question-based on, "compute par value".

I have tried it but no luck.

On October 1, Oriole Corporation's stockholders' equity is as follows.
Common stock, $7 par value
$535,500
Paid-in capital in excess of par-common stock
30,000
Retained earnings
167,000
Total stockholders' equity
$732,500
On October 1, Oriole declares and distributes a 10% stock dividend when the market price of the stock is $14 per share.

Compute the par value per share (1) before the stock dividend and (2) after the stock dividend.
Par value before the stock dividend
2$
Par value after the stock dividend
2$
eTexthook and Media

Expert Solution

Step 1

Stock dividend means when shares of the company are issued by way of dividend to the shareholders. Here, number of shares will increase but total value pertaining to shareholders will be same

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions