Question
On July 1, 2014, Davidson Corporation had the following capital structure. Common stock (par $4) $ 612,000 Capital in excess of par 990,000 Retained earnings
On July 1, 2014, Davidson Corporation had the following capital structure. |
Common stock (par $4) | $ | 612,000 |
Capital in excess of par | 990,000 | |
Retained earnings | 760,000 | |
Treasury stock | 0 | |
Required: |
Complete the following comparative tabulation based on two independent cases: (Round "Par value per share" answers to 2 decimal places.) |
Case 1: | The board of directors declared and issued a 60 percent stock dividend when the stock was selling at $6 per share. |
Case 2: | The board of directors voted a 6-to-5 stock split (i.e., a 20 percent increase in the number of shares). The market price prior to the split was $6 per share. Items Before Dividend and Split After Stock Dividend After Stock Split Common Stock Account ? ? ? Par value per share 4.00 ? ? Shares Outstanding ? ? ? Capital in excess of par $990,000 ? ? Retained Earnings $760,000 ? ? Total Stockholders' Equity ? ? ? |
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