Cash Accounts receivable Fixed assets Total assets Assets Liabilities Accounts payable Notes payable Common stock (110,000 shares @ $4 par) Capital in excess of par Retained earnings Total liabilities & owners' equity The firm's stock sells for $13 a share. $ 80,000 328,000 747,000 $1,155,000 $ 264,000 58,000 440,000 100,000 293,000 $1,155,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Cash
Accounts receivable
Fixed assets
Total assets
Assets
Accounts payable
Notes payable
Common stock (110,000 shares @ $4 par)
Capital in excess of par
Retained earnings
Total liabilities & owners' equity
Common stock
Capital excess of par
Retained earnings
Total equity
Liabilities
Common stock
Capital excess of par
Retained earnings
Total equity
The firm's stock sells for $13 a share.
a. Show the effect on the capital accounts of a two-for-one stock split. (Do not round intermediate calculations and round your
answers to the nearest whole dollar.)
Effect of Stock
Split
$
0
80,000
328,000
747,000
$1,155,000
b. Show the effect on the capital accounts of a 10 percent stock dividend. Part bis separate from part a. In part b, do not assume the
stock split has taken place. (Do not round intermediate calculations and round your answers to the nearest whole dollar.)
Effect of Stock
Dividend
$ 264,000
58,000
440,000
100,000
293,000
$1,155,000
0
Transcribed Image Text:Cash Accounts receivable Fixed assets Total assets Assets Accounts payable Notes payable Common stock (110,000 shares @ $4 par) Capital in excess of par Retained earnings Total liabilities & owners' equity Common stock Capital excess of par Retained earnings Total equity Liabilities Common stock Capital excess of par Retained earnings Total equity The firm's stock sells for $13 a share. a. Show the effect on the capital accounts of a two-for-one stock split. (Do not round intermediate calculations and round your answers to the nearest whole dollar.) Effect of Stock Split $ 0 80,000 328,000 747,000 $1,155,000 b. Show the effect on the capital accounts of a 10 percent stock dividend. Part bis separate from part a. In part b, do not assume the stock split has taken place. (Do not round intermediate calculations and round your answers to the nearest whole dollar.) Effect of Stock Dividend $ 264,000 58,000 440,000 100,000 293,000 $1,155,000 0
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