FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:**Jones Corporation Capital Structure Analysis**
On July 1, Jones Corporation had the following capital structure:
- **Common Stock, par $1:** 8,000,000 authorized shares, 105,000 issued and outstanding
- Common Stock Value: $105,000
- **Additional Paid-in Capital:** $91,000
- **Retained Earnings:** $171,000
- **Treasury Stock:** None
**Required:**
Complete the following table based on two independent cases involving stock transactions. *(Round "per share" answers to 2 decimal places.)*
**Case 1:** The board of directors declared and issued a 100 percent stock dividend when the stock price was $7 per share.
**Case 2:** The board of directors voted a 2-for-1 stock split. The stock price prior to the split was $7 per share.
| Items | Case 1 | Case 2 |
|--------------------------------|--------------------------------------|----------------------------------|
| **Number of Shares Outstanding** | | |
| **Par Per Share** | $1.00 | |
| **Common Stock Account** | | |
| **Additional Paid-in Capital** | $91,000 | |
| **Retained Earnings** | $171,000 | |
| **Total Stockholders' Equity** | | |
This table needs to be filled out according to the results of Case 1 and Case 2 transactions, affecting the number of shares, par value per share, and stockholders' equity. The analysis can help in understanding the impact of dividends and stock splits on the company's financial structure.
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