Morgan's Has 9,000 Shares of Stock Outstanding with a Par

question 133

Multiple Choice

Morgan's has 9,000 shares of stock outstanding with a par value of $1.00 per share and a market value of $9 per share. The balance sheet shows $9,000 in the common stock account, $21,000 in the capital in excess of par account, and $40,500 in the retained earnings account. The firm just announced a 100 percent (large) stock dividend. What is the value of the common stock account after the dividend?

• A) $9,000
• B) $11,000
• C) $13,500
• D) $16,500
• E) $18,000

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