On July 1, Jones Corporation had the following capital structure: Common Stock, par $1; 8,000,000 authorized shares, 105,000 issued and outstanding Additional Paid-in Capital Retained Earnings $ 105,000 91,000 171,000 Treasury Stock None Required: Complete the following table based on two independent cases involving stock transactions: (Round "per share" answers to 2 decimal places.) Case 1: The board of directors declared and issued a 100 percent stock dividend when the stock price was $7 per share. Case 2: The board of directors voted a 2-for-1 stock split. The stock price prior to the split was $7 per share.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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**Jones Corporation Capital Structure Analysis**

On July 1, Jones Corporation had the following capital structure:

- **Common Stock, par $1:** 8,000,000 authorized shares, 105,000 issued and outstanding
  - Common Stock Value: $105,000
- **Additional Paid-in Capital:** $91,000
- **Retained Earnings:** $171,000
- **Treasury Stock:** None

**Required:**

Complete the following table based on two independent cases involving stock transactions. *(Round "per share" answers to 2 decimal places.)*

**Case 1:** The board of directors declared and issued a 100 percent stock dividend when the stock price was $7 per share.

**Case 2:** The board of directors voted a 2-for-1 stock split. The stock price prior to the split was $7 per share.

| Items                          | Case 1                               | Case 2                           |
|--------------------------------|--------------------------------------|----------------------------------|
| **Number of Shares Outstanding** |                                      |                                  |
| **Par Per Share**               | $1.00                                |                                  |
| **Common Stock Account**        |                                      |                                  |
| **Additional Paid-in Capital**  | $91,000                              |                                  |
| **Retained Earnings**           | $171,000                             |                                  |
| **Total Stockholders' Equity**  |                                      |                                  |

This table needs to be filled out according to the results of Case 1 and Case 2 transactions, affecting the number of shares, par value per share, and stockholders' equity. The analysis can help in understanding the impact of dividends and stock splits on the company's financial structure.
Transcribed Image Text:**Jones Corporation Capital Structure Analysis** On July 1, Jones Corporation had the following capital structure: - **Common Stock, par $1:** 8,000,000 authorized shares, 105,000 issued and outstanding - Common Stock Value: $105,000 - **Additional Paid-in Capital:** $91,000 - **Retained Earnings:** $171,000 - **Treasury Stock:** None **Required:** Complete the following table based on two independent cases involving stock transactions. *(Round "per share" answers to 2 decimal places.)* **Case 1:** The board of directors declared and issued a 100 percent stock dividend when the stock price was $7 per share. **Case 2:** The board of directors voted a 2-for-1 stock split. The stock price prior to the split was $7 per share. | Items | Case 1 | Case 2 | |--------------------------------|--------------------------------------|----------------------------------| | **Number of Shares Outstanding** | | | | **Par Per Share** | $1.00 | | | **Common Stock Account** | | | | **Additional Paid-in Capital** | $91,000 | | | **Retained Earnings** | $171,000 | | | **Total Stockholders' Equity** | | | This table needs to be filled out according to the results of Case 1 and Case 2 transactions, affecting the number of shares, par value per share, and stockholders' equity. The analysis can help in understanding the impact of dividends and stock splits on the company's financial structure.
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