Assume that a company has the following information: Common Stock Information: # of shares issued and outstanding Par value per share 20,000 $9 Stockholders' Equity section of the Balance Sheet: Common Stock Additional Paid in Capital Retained Earnings Total Stockholders' Equity $180,000 $3,000,000 $4,820,000 $8,000,000 The company has the option of EITHER announcing a 3:1 stock split OR declaring a 200% stock dividend. Fill in the blanks below to show the stockholders' equity balances under each of these options. After After Current 3:1 200% Situation Stock Split Stock Dividend Common Stock Information: # of shares issued and outstanding 20,000 Par value per share $9 Stockholders' Equity section of the Balance Sheet: Common Stock $180,000 Additional Paid in Capital $3,000,000 Retained Earnings $4,820,000 Total Stockholders' Equity $8,000,000 IIII II IIII

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assume that a company has the following information:
Common Stock Information:
# of shares issued and outstanding
Par value per share
20,000
$9
Stockholders' Equity section of the Balance Sheet:
Common Stock
$180,000
Additional Paid in Capital
Retained Earnings
Total Stockholders' Equity
$3,000,000
$4,820,000
$8,000,000
The company has the option of EITHER announcing a 3:1 stock split OR declaring a 200% stock dividend.
Fill in the blanks below to show the stockholders' equity balances under each of these options.
After
After
Current
3:1
200%
Situation
Stock Split
Stock Dividend
Common Stock Information:
# of shares issued and outstanding
20,000
Par value per share
$9
Stockholders' Equity section of the Balance Sheet:
Common Stock
$180,000
Additional Paid in Capital
$3,000,000
Retained Earnings
$4,820,000
Total Stockholders' Equity
$8,000,000
II IIII
Transcribed Image Text:Assume that a company has the following information: Common Stock Information: # of shares issued and outstanding Par value per share 20,000 $9 Stockholders' Equity section of the Balance Sheet: Common Stock $180,000 Additional Paid in Capital Retained Earnings Total Stockholders' Equity $3,000,000 $4,820,000 $8,000,000 The company has the option of EITHER announcing a 3:1 stock split OR declaring a 200% stock dividend. Fill in the blanks below to show the stockholders' equity balances under each of these options. After After Current 3:1 200% Situation Stock Split Stock Dividend Common Stock Information: # of shares issued and outstanding 20,000 Par value per share $9 Stockholders' Equity section of the Balance Sheet: Common Stock $180,000 Additional Paid in Capital $3,000,000 Retained Earnings $4,820,000 Total Stockholders' Equity $8,000,000 II IIII
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