E11-23 (Algo) Comparing Stock Dividends and Stock Splits LO11-6 On July 1, Davidson Corporation had the following capital structure: Common stock ( $3 par value) Additional paid-in capital Retained earnings Treasury stock $ 654,000 1,050,000 770,000 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 60 percent stock dividend when the stock was selling at $5 per share. Case 2: The board of directors announced a 6-for-5 stock split (i.e., a 20 percent increase in the number of shares). The market price prior to the split was $5 per share. Items After Stock Dividend Before Dividend and Split $ 654,000 $ 3.00 After Stock Split $ 65,400 Common stock account $ 3.33 $ 3.33 Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders' equity $ 1,050,000 $ 77 $ 770,000 $ 443,000 $ 770,000