boats and bait has 59,000 shares outstanding that sell for a price of $55 per share. the stock has a par value of $2 per share. the company's balance sheet shows capital surplus of $90,000 and retained earnings of $130,000. if the company declares a stock dividend of 20 percent, what is the new common stock value on the balance sheet?

It is given that boats and bait have 59,000 shares outstanding that are sold for a price of $55 per share. First, we will find out the common stock value on the balance sheet prior to the dividend

=> No. of stock outstanding * Face value per share.

=> 59000 * 2

=> $118,000

The stock dividend is 20%. So, to find the new shares to be issued we can solve:

=> 59000 * 20%

=> 59000 * 0.2

=> 11,800 shares

Now we will have to find out the total stock outstanding after the dividend. This can be calculated by:

=> 59000 + 11800

=> 70,800 Shares

The value of common stock after the stock dividend will be

=> 70,800 * 2

=> $141,600

Hence, the common stock value will be $141,600 after the dividend.

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