Solved: The stockholders equity section of ovear corporation, Accounting Basics

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The stockholders equity section of ovear corporation

1. The stockholders' equity section of O'Vear Corporation consists of common stock ($10 par) $2,000,000 and retained earnings $500,000. A 10% stock dividend (20,000 shares) is declared when the market value per share is $14. Show the before and after effects of the dividend on the following

(a) The components of stockholders' equity.

(b) Shares outstanding.

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Accounting Basics: The stockholders equity section of ovear corporation

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Accounting Basics: The stockholders equity section of ovear corporation

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