On June 30, 2015, Roger Company Showed the Following Data

question 114

Multiple Choice

On June 30, 2015, Roger Company showed the following data on the equity section of their balance sheet: $\begin{array}{c}\begin{array}{|l|}\hline \text {Stockholders'equity}\\\hline \text {Common stock, \( \$ 1 \) par}\\\hline \\\hline \text {Paid-in capital in excess of}\\ \text {par-Common}\\\hline \text {Retained earnings}\\\hline \text {Total stockholder's equity}\\\hline\end{array}\begin{array}{r}\hline\\\hline \text {190,000 shares authorized,}\\\hline \text {140,000 shares issued and outstanding}\\\hline\\\\\hline\\\hline\\\hline \end{array}\begin{array}{|r|}\hline\\\hline \\\hline \$140,000\\\hline\\260,000\\\hline\underline{940,000}\\\hline\underline{\$1,340,000}\\\hline\end{array}\end{array}$
On July 1, 2015, Roger declared and distributed a 5% stock dividend. The market value of the stock at that time was $13 per share. Following this transaction, what would be the new balance in Paid-In Capital in Excess of Par-Common?

• A) $286,000
• B) $284,000
• C) $260,000
• D) $344,000

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Definitions:

Fixture

A thing that was originally personal property and that has been actually or constructively affixed to the soil itself or to some structure legally a part of the land.

Abandoned Property

Property that is left by its owner who has no intention of returning or claiming ownership.

Producing

The act of creating, manufacturing, or otherwise bringing into existence a product or service.

Inheriting

The process by which assets, traditions, or genetic traits are received from predecessors or relatives after their death.