E11-23 LO11-6 Comparing Stock Dividends and Stock Splits On July 1, Davidson Corporation had the following capital structure: Common stock ($1 par value) Additional paid-in capital Retained earnings Treasury stock Required: Complete the table below for each of the two following independent cases: Case 1: Case 2: The board of directors declared and issued a 50 percent stock dividend when the stock was selling at $12 per share. The board of directors announced a 6-for-5 stock split. The market price prior to the split was $12 per share. Before Dividend After After Items or Split Stock Dividend Stock Split Common stock account $ $ Par value per share $1 $ Shares outstanding # # Additional paid-in capital $900,000 $ Retained earnings $700,000 Total stockholders' equity $ $600,000 900,000 700,000 -0-