The stockholders’ equity for Shami, Inc., on December 31, 2011, follows:Stockholders’ EquityPaid-in Capital:Common Stock, $1 par, 900,000 shares authorized,30,000 issued and outstanding…….. . $ 30,000Paid-in Capital in Excess of Par………. 120,000Total Paid-in Capital………….. 150,000Retained Earnings………….. 330,000Total Stockholders’ Equity………. $480,000On August 31, 2012, the market price of Shami, Inc.’s, common stock was $22 per share and the company distributed a 20% stock dividend.Requirements1. Journalize the declaration and distribution of the stock dividend.2. Prepare the stockholders’ equity section of the balance sheet after the stock dividend..View Solution:
The stockholders equity for Shami Inc on December 31 2011



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