ACCOUTING PRIN SET LL INCLUSIVE
ACCOUTING PRIN SET LL INCLUSIVE
14th Edition
ISBN: 9781119815327
Author: Weygandt
Publisher: WILEY
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Chapter 14, Problem 4E
To determine

Stock Dividend: When a firm has shortage of cash it distributes the dividend to the shareholders in the form of additional shares rather than paying dividend in cash. This payment of the firm is called as stock dividend.

Stock Split: When a firm decides to issue more shares to the existing shareholders in order to increase the number of outstanding shares, it is termed as stock split. After a split stock price gets reduced as the number of outstanding shares increases.

To determine: The total stockholders’, retained earnings and shares outstanding after dividend and stock split.

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