Diebold, Incorporated, is a world leader in financial self-service transaction systems, security products, and customer service. The company develops, manufactures,

sells, and services automated teller machines (ATMs), electronic and physical security systems, and bank facility equipment. It also designs and markets related application software and integrated systems for global financial and commercial markets. Headquartered in Canton, Ohio, Diebold has offices in five countries and manufacturing facilities in the United States and China.
The following note related to stockholders' equity was recently reported in Diebold's annual report:

\section*{Instructions}

(a) What is the significance of the date of record and the date of distribution?

(b) Why might Diebold have declared a 3-for-2 stock split?

(c) What impact does Diebold's stock split have on (1) total stockholders' equity, (2) total par value, and (3) outstanding shares?

Transcribed Image Text:

DIEBOLD INCORPORATED DIEBOLD, INC. Notes to the Financial Statements On February 1, 1994, the Board of Directors declared a 3-for-2 stock split, distributed on February 22, 1994, to shareholders of record on February 10, 1994. Accordingly, all numbers of common shares, except authorized shares and treasury shares, and all per share data have been restated to reflect this stock split in addition to the 3-for-2 stock split declared on January 27, 1993, distributed on February 26, 1993, to shareholders of record on February 10, 1993. On the basis of amounts declared and paid, the annualized quarterly dividends per share were S.80 in 1993, $.75 in 1992, and $.71 in 1991.