The stockholders’ equity section of Jun Company’s balance sheet as of April 1 follows. On April 2, Jun declares and distributes a 20% stock dividend. The stock’s per share market value on April 2 is $15 (prior to the dividend).
Common stock—$5 par value, 475,000 shares authorized, 250,000 shares issued and outstanding $ 1,250,000
Paid-in capital in excess of par value, common stock 590,000
Retained earnings 883,000
Total stockholders' equity $ 2,723,000
