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Exercise 14-4 on October 31 the stockholders' equity section of Heins Company consists o common stock $36000 and retained earnings 902 000 Heins s considering
Exercise 14-4 on October 31 the stockholders' equity section of Heins Company consists o common stock $36000 and retained earnings 902 000 Heins s considering the following two courses of action: 1 declaring a 7% stock dividend on the 36,000, 10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $14 per share. Prepare a tabular summary of the effects of the altenative actions on the components of stockholders equity, outstanding shares, and par value per share. Before Action After Stock Dividend After Stock Split Paid-in capital Common stock In excess of par Total paid-in capital Retained earnings Total stockholders equity s Outstanding shares Par value per share
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