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(a) (1)
Stock Dividends: It refers to the payment of the dividend to its shareholders by the corporation in the form of shares rather than cash is referred as stock dividend.
Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.
To Show: the effect of 15% stock dividend issue on
(2)
To Show: the effect of stock split on retained earnings for Company S before and after stock split.
(b) 1.
To Show: the effect of 15% stock dividend issue on
(2)
To Show: the effect of stock split on stockholders’ equity for Company S before stock split
To Show: the effect of stock split on stockholders’ equity for Company S after stock split.
(c) (1)
To show: the effect of 15% stock dividend on par value per share.
(2)
To show: the effect of stock split on par value per share.
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Chapter 11 Solutions
FIN. ACC.:TOOLS F/BUS DECISION MAKING
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