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authorized, 28,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 224,000 100,000 324,000 $ 648,000 1. Assume that the company declares and immediately distributes a 100% stock dividend. This event is recorded by capitalizing retained earnings equal to the stock's par value. a., b. & c. Complete the below table to calculate the retained earnings balance, total stockholders' equity and number of outstanding shares. 2. Assume that the company implements a 3-for-2 stock split instead of the stock dividend in part 1. a., b. & c. Complete the below table to calculate the retained earnings balance, total stockholders' equity and number of outstanding shares.

authorized, 28,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 224,000 100,000 324,000 $ 648,000 1. Assume that the company declares and immediately distributes a 100% stock dividend. This event is recorded by capitalizing retained earnings equal to the stock's par value. a., b. & c. Complete the below table to calculate the retained earnings balance, total stockholders' equity and number of outstanding shares. 2. Assume that the company implements a 3-for-2 stock split instead of the stock dividend in part 1. a., b. & c. Complete the below table to calculate the retained earnings balance, total stockholders' equity and number of outstanding shares.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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authorized, 28,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 1. Assume that the company declares and immediately distributes a 100% stock dividend. This event is recorded by capitalizing retained earnings equal to the stock's par value. a., b. & c. Complete the below table to calculate the retained earnings balance, total stockholders' equity and number of outstanding shares. 2. Assume that the company implements a 3-for-2 stock split instead of the stock dividend in part 1. a., b. & c. Complete the below table to calculate the retained earnings balance, total stockholders' equity and number of outstanding shares. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume that the company implements a 3-for-2 stock split instead of the stock dividend in required 1. Complete the below table to calculate the retained earnings balance, total stockholders' equity and number of outstanding shares. Stock Split Common stock Paid in capital in excess of value par Total contributed capital Retained earnings Total stockholders' equity Number of common shares outstanding $ 224,000 100,000 324,000 $ 648,000 Before Stock Split $ 224,000 100,000 324,000 324,000 $ 648,000 $ Impact of Stock Split: $ < Required 1 0 0 0 0 0 19,000 After Stock Split $ $ Requined 2 224.000 100,000 324,000 324,000 648,000
Transcribed Image Text:authorized, 28,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 1. Assume that the company declares and immediately distributes a 100% stock dividend. This event is recorded by capitalizing retained earnings equal to the stock's par value. a., b. & c. Complete the below table to calculate the retained earnings balance, total stockholders' equity and number of outstanding shares. 2. Assume that the company implements a 3-for-2 stock split instead of the stock dividend in part 1. a., b. & c. Complete the below table to calculate the retained earnings balance, total stockholders' equity and number of outstanding shares. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume that the company implements a 3-for-2 stock split instead of the stock dividend in required 1. Complete the below table to calculate the retained earnings balance, total stockholders' equity and number of outstanding shares. Stock Split Common stock Paid in capital in excess of value par Total contributed capital Retained earnings Total stockholders' equity Number of common shares outstanding $ 224,000 100,000 324,000 $ 648,000 Before Stock Split $ 224,000 100,000 324,000 324,000 $ 648,000 $ Impact of Stock Split: $ < Required 1 0 0 0 0 0 19,000 After Stock Split $ $ Requined 2 224.000 100,000 324,000 324,000 648,000
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