Accounting help Please. I don't understand.?


Question:
The stockholders’ equity section of Catalina Company’s balance sheet as of April 1 follows. On April 2, Catalina declares and distributes a 10% stock dividend. The stock’s per share market value on April 2 is $25. Prepare the stockholders’ equity section immediately after the stock dividend.

Common stock—$5 par value, 375,000 shares
authorized, 150,000 shares issued and outstanding . . . . . .750,000
Contributed capital in excess of par value, common stock .352,500
Total contributed capital . . . . . . . . . . . . . . . . . . . . . . . 1,102,500
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .633,000
Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,735,500

Answer:
I can see why you don't understand it..
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