On July 1, Jones Corporation had the following capital structure: Common stock, par $1; 8,000,000 authorized shares, 135,000 issued and outstanding Additional Paid-in Capital Retained Earnings Treasury Stock $ 135,000 97,000 177,000 None Required: Complete the following table based on two independent cases involving stock transactions (Round "per share" answers to 2 decima 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.
On July 1, Jones Corporation had the following capital structure: Common stock, par $1; 8,000,000 authorized shares, 135,000 issued and outstanding Additional Paid-in Capital Retained Earnings Treasury Stock $ 135,000 97,000 177,000 None Required: Complete the following table based on two independent cases involving stock transactions (Round "per share" answers to 2 decima 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On July 1, Jones Corporation had the following capital structure:
Common stock, par $1; 8,000,000 authorized shares, 135,000 issued and outstanding
Additional Paid-in Capital
Retained Earnings
Treasury stock
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
Number of Shares Outstanding
Par Per Share
Common Stock Account
Additional Paid-in Capital
Retained Earnings
Total Stockholders' Equity
Before Stock
Transactions
$ 1.00
97,000
177,000
$ 135,000
97,000
177,000
None
Case 1
After 100%
Stock
Dividend
Case 2
After Stock
Split
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