Expert Answer :Stockholders Equity

Solved by verified expert :On March 1, Pluto Corporation declared and issued a 10% stock dividend on its 200,000outstanding shares of $3 par value common stock. On September 1, Pluto declared a 3-for-1stock slit and changed its par value accordingly. The market value of Pluto’s stock was $20per share on March 1 and $24 per share on September 1. On February 28, Pluto’s stockholders’equity appeared as follows:Stockholders Equity February 28:Common stock (200,000 $3 par shares issued$600,000Paid-in capital in excess of par1,800,000Contributed capital2,400,000Retained earnings1,600,000Total Stockholders’ equity$4,000,000Required:In the space below prepare, in good form, the stockholders’ equity section after the stock split.No partial credit will be awarded without detailed computations.