The Western Pipe Company has the following capital section in its balance sheet. Its stock is currently selling for $4 per share. Common stock (65,000 shares at $2 par) $ 130,000 Capital in excess of par 130,000 Retained earnings 250,000 Total equity $ 510,000 The firm intends to first declare a 10 percent stock dividend and then pay a 15-cent cash dividend (which also causes a reduction of retained earnings). Required:
Show the capital section of the balance sheet after the first transaction and then after the second transaction