On June 30, 2018, Ginger, Inc. showed the following data on the equity section of their balance sheet:
On July 1, 2018, the company declared and distributed a 9% stock dividend. The market value of the stock at that time was $20 per share. Following this transaction, what is the balance of Common Stock?
A) $163,500
B) $57,180
C) $285,540
D) $357,180
A) $163,500
Explanation: The new balance in the Common stock account = Common Stock + Stock dividend distributable = $150,000 + [(150,000 × 9%) × $1] = $163,500
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