Below is United Delivery Service’s (UDS) stockholders' equity for the year ended 2022:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Below is United Delivery Service’s (UDS) stockholders' equity for the year ended 2022:

Common Stock, $3 par value

$60,000

Paid-in Capital in Excess of Par—Common

35,000

Retained Earnings

100,000

Treasury Stock

(10,000)

In March, UDS declares and distributes a 12% stock dividend when the market value of the stock is $6.

 

1) Prepare UDS's March end stockholders' equity section.

2) How would retained earnings change if UDS doubled their number of shares through a 2 for 1 stock split?

 

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