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At December 31, Artists Unlimited Company had the following stockholder's equity components that would be part of the balance sheet: 3 100% 2 $5,000 Stock
At December 31, Artists Unlimited Company had the following stockholder's equity components that would be part of the balance sheet: 3 100% 2 $5,000 Stock for 1 Stock Cash 5 Stockholders' Equity At Dec 31 Dividend Split Dividend 5 Contributed Capital: Number of common shares outstanding 5,000 Par value per common share $ 1.00 Common Stock, at par $ 5,000 0 Additional Paid in Capital 745,000 1 Total Contributed Capital 750,000 2 Retained Earnings 980,000 3 Total Stockholders' Equity $ 1,730,000 4 5 6 Required: 7 The company is considering 3 alternative distributions to stockholders. Consider each alternative independently of the others. 8 Complete the table above and show the resulting balances on the stockholders' equity section as a result of these distributions. 9 Use only cell references in formulas. Use cells C3, D3, and E3 as appropriate. Do not reference cells from one alternative in another alternative. 0 1 1) Issue a 100% stock dividend. 2 OR 3 2) Execute a 2-for-1 stock split. 4 OR 5 3) Distribute a $5,000 cash dividend. 6
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