Weil Corporation has 80,000 shares of $8 par value common stock outstanding. Complete the following comparative tabulation based on two independent cases: • Case A: The board of directors declared and issued a 30 percent stock dividend when the sto was selling at $15 per share. The dividend will be accounted for as a large stock dividend. Case B: The board of directors voted a 4-for-1 forward stock split. Case A Case A Case B Case B Before stock After stock Before Stock Split After Stock Split dividends dividends Par value per $8 $8 share Number of Shares 80,000 80,000 outstanding Total paid-in $640,000 $640,000 Capital Retained Earnings $300,000 $300,000 Total Stockholders' $940,000 $940,000 Equity
Weil Corporation has 80,000 shares of $8 par value common stock outstanding. Complete the following comparative tabulation based on two independent cases: • Case A: The board of directors declared and issued a 30 percent stock dividend when the sto was selling at $15 per share. The dividend will be accounted for as a large stock dividend. Case B: The board of directors voted a 4-for-1 forward stock split. Case A Case A Case B Case B Before stock After stock Before Stock Split After Stock Split dividends dividends Par value per $8 $8 share Number of Shares 80,000 80,000 outstanding Total paid-in $640,000 $640,000 Capital Retained Earnings $300,000 $300,000 Total Stockholders' $940,000 $940,000 Equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Weil Corporation has 80,000 shares of $8 par value common stock outstanding. Complete the
following comparative tabulation based on two independent cases:
• Case A: The board of directors declared and issued a 30 percent stock dividend when the stock
was selling at $15 per share. The dividend will be accounted for as a large stock dividend.
Case B: The board of directors voted a 4-for-1 forward stock split.
Case A
Case A
Case B
Case B
After stock
Before stock
dividends
Before Stock Split After Stock Split
dividends
Par value per
$8
$8
share
Number of Shares
80,000
80,000
outstanding
Total paid-in
$640,000
$640,000
Capital
Retained Earnings $300,000
$300,000
Total
Stockholders'
$940,000
$940,000
Equity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9b250c4a-3792-40db-9b27-3e7c251d88e5%2F8848ffa4-f9ed-47f0-9551-1592ce4c10a7%2Fwc0ps9a_processed.png&w=3840&q=75)
Transcribed Image Text:Weil Corporation has 80,000 shares of $8 par value common stock outstanding. Complete the
following comparative tabulation based on two independent cases:
• Case A: The board of directors declared and issued a 30 percent stock dividend when the stock
was selling at $15 per share. The dividend will be accounted for as a large stock dividend.
Case B: The board of directors voted a 4-for-1 forward stock split.
Case A
Case A
Case B
Case B
After stock
Before stock
dividends
Before Stock Split After Stock Split
dividends
Par value per
$8
$8
share
Number of Shares
80,000
80,000
outstanding
Total paid-in
$640,000
$640,000
Capital
Retained Earnings $300,000
$300,000
Total
Stockholders'
$940,000
$940,000
Equity
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