Acc280 Financial Accounting: E14-5 On October 1, Kosko Corporation's stockholders' equity

Acc280 Financial Accounting
E14-5
On October 1, Kosko Corporation's stockholders' equity is as follows.
Common stock, $5 par value 400,000
Paid-in capital in excess of par value 25,000
Retained earnings 155,000
Total stockholders' equity 580,000

On October 1, Kosko declares and distributes a 10% stock dividend when the market value of the stock is $15 per share.

a. Compute the par value per share (1) before the stock dividend and (2) after the stock dividend.
b. Indicate the balances in the three stockholders' equity accounts after the stock dividend shares have been distributed.
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