Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 23

An owner of 2,500 shares of Simmons Company common stock receives a stock dividend of 50 shares.
a. What is the effect of the stock dividend on the stockholder's proportionate interest ( equity) in the corporation
b. How does the total equity of 2,550 shares compare with the total equity of 2,500 shares before the stock dividend