# An owner of 300 shares of Colorado Spring Company common stock recives a stock dividend of 6 shares. a. What is the effect of the stock dividend on the stockholder’s proporhon3te interest (equity) in the corporation? b. how does the total equity of 306 shares compare with the total equity of 300 shares before the stock dividend?

### Survey of Accounting (Accounting I)

8th Edition
Carl Warren
Publisher: Cengage Learning
ISBN: 9781305961883

### Survey of Accounting (Accounting I)

8th Edition
Carl Warren
Publisher: Cengage Learning
ISBN: 9781305961883

#### Solutions

Chapter
Section
Chapter 8, Problem 17CDQ
Textbook Problem

## An owner of 300 shares of Colorado Spring Company common stock recives a stock dividend of 6 shares. a. What is the effect of the stock dividend on the stockholder’s proporhon3te interest (equity) in the corporation? b. how does the total equity of 306 shares compare with the total equity of 300 shares before the stock dividend?

Expert Solution
To determine

Concept Introduction:

Stock Dividend:

The Stock dividend is the number of shares given as dividend to the shareholders. The Stock dividend is declared first and shares are issued later. There are two journal entries made, one at the time of declaration of stock dividend and another at the time of issuance of shares.

Requirement-a:

To Indicate:

The effect of the Stock Dividend on the Stockholder's equity

### Explanation of Solution

The Stock Dividend does not affec...

Expert Solution
To determine

Concept Introduction:

Stock Dividend:

The Stock dividend is the number of shares given as dividend to the shareholders. The Stock dividend is declared first and shares are issued later. There are two journal entries made, one at the time of declaration of stock dividend and another at the time of issuance of shares.

Requirement-b:

To Indicate:

The effect of the Stock Dividend on the Stockholder's equity

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