Question
On July 1, Davidson Corporation had the following capital structure: Common stock ( $2 par value) $ 666,000 Additional paid-in capital 940,000 Retained earnings 860,000
On July 1, Davidson Corporation had the following capital structure: Common stock ( $2 par value) $ 666,000 Additional paid-in capital 940,000 Retained earnings 860,000 Treasury stock 0 Required: Complete the table below for each of the two following independent cases: Note: Round "Par value per share" amounts to 2 decimal places. Case 1: The board of directors declared and issued a 50 percent stock dividend when the stock was selling at $4 per share. Case 2: The board of directors announced a 6-for-5 stock split. The market price prior to the split was $4 per share.
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