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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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