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I've tried to do this question multiple times but I'm not doing my math correctly. Can someone explain how they get the other numbers? Your
I've tried to do this question multiple times but I'm not doing my math correctly.
Can someone explain how they get the other numbers?
Your answer is partially correct. Try again. On October 31, the stockholders' equity section of Sunland Company consists of common stock $285,000 and retained earnings $887,000. Sunland is considering the following two courses of action: (1) declaring a 4% stock dividend on the 28,500, $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 $15 per share. Prepare a tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and par value per share. Before Action After Stock Dividend After Stock Split Stockholders' equity Paid-in capital Common stock 285000 In excess of par Total paid-in capital 285000 Retained earnings blitddi Total stockholders' equity Outstanding shares Par value per share Click if you would like to Show Work for this question: Open Show WorkStep by Step Solution
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