Question
On July 1, 2014, Davidson Corporation had the following capital structure: Common stock (par $3) $ 732,000 Capital in excess of par 1,030,000 Retained earnings
On July 1, 2014, Davidson Corporation had the following capital structure: Common stock (par $3) $ 732,000 Capital in excess of par 1,030,000 Retained earnings 810,000 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 50 percent stock dividend when the stock was selling at $5 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 $5 per share.
On July 1, 2014, Davidson Corporation had the following capital structure Common stock (par 3) Capital in excess of par Retained earnings Treasury stock $ 732,000 1,030,000 810,000 Required Complete the following comparative tabulation based on two independent cases: (Round "Par value per share" answers to 2 decimal places.) Case 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 voted a 6-to-5 stock split (ie., a 20 percent increase in the number of shares). The market price prior to the split was $5 per share After Stock Dividend After Stock Split Before Dividend Items and Split Common stock account Par value per share Shares outstanding Capital in excess of par Retained earnings Total stockholders' equity 732,000 3.00 $ 1,030,000 810,000Step by Step Solution
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