Answer Happy

Required information [The following information applies to the questions displayed below.] Bacon Inc. has the following stockholders' equity section in its May 31, 2019, comparative balance sheets: Paid-in capital: Preferred stock, $120 par value, 9%, cumulative, 200,000 shares authorized, 140,000 shares issued and outstanding Common stock, $5 par value, 1,000,000 shares authorized, 600,000 and 540,000 shares issued, respectively Additional paid-in capital Retained earnings Less: Treasury common stock, at cost; 72,000 shares and 68,000 shares, respectively Total stockholders' equity Assets ... May 31, 2019 April 30, 2019 Balance Sheet Liabilities $16,800,000 ? 26,100,000 36,200,000 (4,412,000) $ 7 f-1. Assume that on June 1 the market value of the common stock was $70 per share and that the board of directors declared a 10% stock dividend on the issued shares of common stock. Use the horizontal model to show the issuance of the stock dividend. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) $16,800,000 2,700,000 23,220,000 34,640,000 Stockholders' Equity (4,148,000) $73,212,000- Net Incom