First transaction and then after the second transaction

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The Western Pipe Company has the following capital section in its balance sheet. Its stock is currently selling for $6 per share.

Common stock (50,000 shares at $2 par) ........................$100,000

Capital in excess of par…………………......…………….…..100,000

Retained earnings ...............................................................250,000

$450,000

The firm intends to first declare a 15 percent stock dividend and then pay a 5 cent cash dividend (which is also caused by a reduction of retained earnings). Show the capital section of the balance sheet after the first transaction and then after the second transaction.

Reference no: EM131308542

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