On June 30, 2017, Roger, Inc showed the following data on the equity section of their balance sheet
Stockholders' Equity
Common Stock, $1 par; 202,000 shares authorized, 150,000 shares issued and outstanding $150,000
Paid-In Capital in Excess of Par-Common $260,000
Retained Earnings 946,000
Total Stockholder's Equity $1,356,000
On July 1, 2017, 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 .A) The new balance in the Common stock account = Common Stock + Stock dividend distributable = $150,000 + [(150,000 x 9%) x $1] = $163,500
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