The following represents the stockholder’s equity account of Security Data Company: 0R Preferred stockR200,000 Common stock (R4 par)R200,000 Paid-in capital in excess of parR350,000 Retained earningsR350,000 Total stockholder’s equity ######## Additional information provided: Current share priceR40 Earning Available to Common Shareholders (EACS)R120,000 The firm is considering a 5% stock dividend. A. Rework the stockholder’s equity account for Security Data Company should the firm decide to implement the stock dividend. Current New Preferred stockR200,000 [0,5] Common stock (R4 par)R200,000 [1] Paid-in capital in excess of parR350,0000[1] Retained earningsR350,000 [1] Total stockholder’s equity ######## 0.5

As per the given information: Preferred stock R200,000 Common stock (R4 par) R200,000…

Answered: The following represents the…

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 11.16E

Related questions

Question

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The following represents the stockholder’s equity account of Security Data Company:
0	R
Preferred stock	R200,000
Common stock (R4 par)	R200,000
Paid-in capital in excess of par	R350,000
Retained earnings	R350,000
Total stockholder’s equity	########

Additional information provided:
Current share price	R40
Earning Available to Common Shareholders (EACS)	R120,000
The firm is considering a 5% stock dividend.



A. Rework the stockholder’s equity account for Security Data Company should the firm decide to implement the stock dividend.
	Current	New
Preferred stock	R200,000		[0,5]
Common stock (R4 par)	R200,000		[1]
Paid-in capital in excess of par	R350,000	0	[1]
Retained earnings	R350,000		[1]
Total stockholder’s equity	########		0.5