012-4 XERCISE 12.7 ash Dividends, Stock vidends, and Stock Splits HiTech Manufacturing Company has 1,000,000 shares of $1 par value capital stock outstanding on January 1. The following equity transactions occurred during the current year: Distributed additional shares of capital stock in a 2-for-1 stock split. Market price of stock was $35 per share. Declared a cash dividend of $0.60 per share. Apr. 30 June July Aug. 1 Paid the $0.60 cash dividend to stockholders. Declared a 5 percent stock dividend. Market price of stock was $19 per share. Issued shares resulting from the 5 percent stock dividend declared on August 1. 1 Sept. 10 a. Prepare journal entries to record the above transactions. b. Compute the number of shares of capital stock outstanding at year-end. What is the par value per share of HiTech Manufacturing stock at the end of the year? d. Determine the effect of each of the following on total stockholders' equity: stock split, decla- ration and payment of a cash dividend, declaration and distribution of a stock dividend. (Your answers should be either increase, decrease, or no effect.) c