Reference no: EM132819553
July 31, 2019, when Warner Co's shares were selling at $16 per share, its capital accounts were as follows:
Common Shares (no par, 40,000 shares issued and outstanding) - $750,000
Retained Earnings - $1,300,000.
Problem 1: If a 5 percent "stock dividend" was declard & distributed, the balance of the Common Shares account would be:
Option 1: $782,000
Option 2: $1,300,000
Option 3: $1,532,000
Option 4: $750,000
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