The stockholders’ equity section of Jun Company’s balance sheet as of April 1 follows. On April 2, Jun declares and distributes a 10% stock dividend. The stock’s per share market value on April 2 is...

The stockholders’ equity section of Jun Company’s balance sheet as of April 1 follows. On April 2, Jun declares and distributes a 10% stock dividend. The stock’s per share market value on April 2 is $20 (prior to the dividend). Prepare the stockholders’ equity section immediately after the stock dividend. Common stock — $5 par value, 375,000 shares authorized, 200,000 shares issued and outstanding . . . . . . . . . $1,000,000 Paid-in capital in excess of par value, common stock . . . . . . . . . 600,000 Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 833,000 Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,433,000 View Solution:

The stockholders equity section of Jun Company s balance sheet as