(1) (a)
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 K before and after stock split.
1. (b)
To Show: the effect of 15% stock dividend issue on
(2)
To Show: the effect of stock split on stockholders’ equity for Company K before stock split.
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