E11-23 (Algo) Comparing Stock Dividends and Stock Splits LO11-6 On July 1, Davidson Corporation had the following capital structure: Common stock ( $4 par value) Additional paid-in capital Retained earnings Treasury stock $ 630,000 1,050,000 880,000 0 Required: Complete the table below for each of the two following independent cases: Note: Round "Par value per share" amounts to 2 decimal places. Case 1: The board of directors declared and issued a 50 percent stock dividend when the stock was selling at $6 per share. Case 2: The board of directors announced a 6-for-5 stock split. The market price prior to the split was $6 per share. Items Common stock account Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders' equity Before Dividend and Split 630,000 4.00 $ $ $ $ 1,050,000 880,000 After Stock Dividend $ After Stock Split 630,000
E11-23 (Algo) Comparing Stock Dividends and Stock Splits LO11-6 On July 1, Davidson Corporation had the following capital structure: Common stock ( $4 par value) Additional paid-in capital Retained earnings Treasury stock $ 630,000 1,050,000 880,000 0 Required: Complete the table below for each of the two following independent cases: Note: Round "Par value per share" amounts to 2 decimal places. Case 1: The board of directors declared and issued a 50 percent stock dividend when the stock was selling at $6 per share. Case 2: The board of directors announced a 6-for-5 stock split. The market price prior to the split was $6 per share. Items Common stock account Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders' equity Before Dividend and Split 630,000 4.00 $ $ $ $ 1,050,000 880,000 After Stock Dividend $ After Stock Split 630,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Sagar
Transcribed Image Text:E11-23 (Algo) Comparing Stock Dividends and Stock Splits LO11-6
On July 1, Davidson Corporation had the following capital structure:
Common stock ( $4 par value)
Additional paid-in capital
Retained earnings
Treasury stock
$ 630,000
1,050,000
880,000
0
Required:
Complete the table below for each of the two following independent cases:
Note: Round "Par value per share" amounts to 2 decimal places.
Case 1: The board of directors declared and issued a 50 percent stock dividend when the stock was selling at $6 per share.
Case 2: The board of directors announced a 6-for-5 stock split. The market price prior to the split was $6 per share.
Items
Common stock account
Par value per share
Shares outstanding
Additional paid-in capital
Retained earnings
Total stockholders' equity
Before Dividend
and Split
630,000
4.00
$
$
$
$
1,050,000
880,000
After Stock
Dividend
$
After Stock
Split
630,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 6 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education