On July 1, Davidson Corporation had the following capital structure: Common stock ( $4 par value) $ 684,000 Additional paid-in capital 1,060,000 Retained earnings 870,000 Treasury stock 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 Before Dividend and Split After Stock Dividend After Stock Split Common stock account Par value per share $4.00 Shares outstanding Additional paid-in capital $1,060,000 Retained earnings $870,000 Total stockholders’ equity
On July 1, Davidson Corporation had the following capital structure: Common stock ( $4 par value) $ 684,000 Additional paid-in capital 1,060,000 Retained earnings 870,000 Treasury stock 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 Before Dividend and Split After Stock Dividend After Stock Split Common stock account Par value per share $4.00 Shares outstanding Additional paid-in capital $1,060,000 Retained earnings $870,000 Total stockholders’ equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On July 1, Davidson Corporation had the following capital structure:
| Common stock ( $4 par value) | $ 684,000 |
|---|---|
| Additional paid-in capital | 1,060,000 |
| 870,000 | |
| 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.
|
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