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)	$	780,000
Additional paid-in capital		920,000
Retained earnings		830,000
Treasury stock		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 50 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.

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 50 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. X Answer is not complete. Items Before Dividend and Split 780,000 After Stock Dividend $ 910,000 After Stock Split $ 780,000 Common stock account $ $ 3.00 $ 5.00 X 260,000 $ Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders' equity 920,000 $ 830,000 $ 2,530,000