On July 1, Davidson Corporation had the following capital structure: Required: Complete the table below for each

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On July 1, Davidson Corporation had the following capital structure:

Required:
Complete the table below for each of the two following independent cases:

Case 1: The board of directors declared and issued a 50 percent stock dividend when the stock was selling at $12 per share.
Case 2: The board of directors announced a 6-for-5 stock split. The market price prior to the split was $12 per share.

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Financial Accounting

ISBN: 9781264229734

11th Edition

Authors: Robert Libby, Patricia Libby, Frank Hodge

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Question Posted: Sep 27, 2022 02:21 AM

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On July 1, Davidson Corporation had the following capital structure: Required: Complete the table below for each

Question:

Common stock ($1 par value) Additional paid-in capital Retained earnings Treasury stock $600,000 900,000 700,000 -0-

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Comments Neither the stock dividend nor stock split changed total stockholders equity because nei...View the full answer

Financial Accounting

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