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On July 1, Davidson Corporation had the following capital structure: Common stock ( $4 par value) Additional paid-in capital Retained earnings Treasury stock $ 732,000
On July 1, Davidson Corporation had the following capital structure: Common stock ( $4 par value) Additional paid-in capital Retained earnings Treasury stock $ 732,000 920,000 860,000 0 Required: Complete the table below for each of the two following independent cases: ((Round "Par value per share" amounts to 2 decimal places.) Case 1: The board of directors declared and issued a 40 percent stock dividend when the stock was selling at $6 per share. Case 2: The board of directors announced a 6-for-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. X Answer is not complete. Items Before Dividend and Split 732,000 After After Stock Stock Dividend Split $ 951,600 X $ 732,000 Common stock account $ $ 4.00 $ 4.00 $ 3.33 244,000 X 317,200 X 292,800 $ Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders' equity 920,000 $ 920,000 $ 920,000 $ 860,000 $ 860,000 $ 2,512,000 $ 2,512,000 $ 2,512,000
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