On July 1, Davidson Corporation had the following capital structure: Common stock ($4 par value) Additional paid-in capital Retained earnings Treasury stock Required: $ 768,000 950,000 850,000 Complete the table below for each of the two following independent cases: Note: Round "Par value per share" amounts to 2 decimal places. Case 1: The board of directors declared and issued a 60 percent stock dividend when the stock was selling at $6 per share. Case 2: The board of directors announced a 6-for-5 stock split. The market price prior to the split was $6 per share. Items Before Dividend and Split After Stock Dividend After Stock Split Common stock account Par value per share $ 4.00 Shares outstanding Additional paid-in capital $ 950,000 Retained earnings $ 850,000 Total stockholders' equity
On July 1, Davidson Corporation had the following capital structure: Common stock ($4 par value) Additional paid-in capital Retained earnings Treasury stock Required: $ 768,000 950,000 850,000 Complete the table below for each of the two following independent cases: Note: Round "Par value per share" amounts to 2 decimal places. Case 1: The board of directors declared and issued a 60 percent stock dividend when the stock was selling at $6 per share. Case 2: The board of directors announced a 6-for-5 stock split. The market price prior to the split was $6 per share. Items Before Dividend and Split After Stock Dividend After Stock Split Common stock account Par value per share $ 4.00 Shares outstanding Additional paid-in capital $ 950,000 Retained earnings $ 850,000 Total stockholders' equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education