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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
Transcribed Image Text: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
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