On June 30 2019 When Smith Company’S Stock Was Selling At $65 Per Share Its Capital Accounts Were As Follows

Question

On June 30, 2019, when Smith Company’s stock was selling at $65 per share, its capital accounts were as follows:

Capital stock (par value $50; 80,000 shares issued) $4,000,000 Paid-in capital in excess of par 600,000 Retained earnings 4,200,000 If a 100% stock dividend were declared and distributed, capital stock would be: a. $4,000,000. b. $4,600,000. c. $8,000,000. d. $8,800,000.

Financial Accounting