E11-23 (Algo) Comparing Stock Dividends and Stock Splits L011-6 On July 1, Davidson Corporation had the following capital structure: Common stock ( 52 par value) Additional paid-in capital Retained earnings Treasury stock 3 732,000 1,010,000 880,000 0 Required: Complete the table below for each of the two following Independent cases (Round "Par value per share" amounts to 2 decimal places.) Case 1: The board of directors declared and issued a 40 percent stock dividend when the stock was selling at $4 per share. Case 2: The board of directors announced a 6-for-5 stock split (.e., a 20 percent increase in the number of shares). The market price prior to the split was $4 per share. Items After Stock Split Common stock account Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders' equity Before Dividend After Stock and Split Dividend $ 732,000 $ 2.00 s 2.00 366,000 $ 1,010,000 $ 880,000 $ 2,622,000