Q12: The stockholders' equity portion of Brimstone Tire Company follows:
Common Stock (2.0 million shares at $10 par) $20,000,000
Capital in excess of par 17,000,000
Retained earnings 33,000,000
The current market value of Brimstone's stock is $20. Show what the balance sheet will look like (comparison to above) if Brimstone declares a 10% stock dividend.© BrainMass Inc. brainmass.com April 1, 2020, 6:57 pm ad1c9bdddf
For your review, I have attached a formatted MS Excel spreadsheet which illustrates the impact of the declared 10% stock dividend on the retained earnings statement of the Brimstone Tire Company.