On December 31, the stockholders’ equity section of the balance sheet of R & B Corporation refle
On December 31, the stockholders' equity section of the balance sheet of R & B Corporation reflected the following: Common stock (par $10; authorized 60,300 shares, outstanding 25,300 shares) Additional paid-in capital Retained eamings $253,000 12,300 76,500 On February 1 of the following year, a 12 percent stock dividend was issued. The market value of the stock on February 1 was $18 per share. Required: 1. For comparative purposes, prepare the stockholders' equity section of the balance sheet (a) immediately before the stock dividend and (b) immediately after the stock dividend. Stockholders' Equity Before Stock Dividend After Stock Dividend Stock Dividend Contributed Capital: Total Contributed Capital 0 Total Stockholders Equity 2. If the stock divicend were 100% , would the balance in additional paidin capital cnange? O Yes No