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On July 1, Davidson Corporation had the following capital structure: Common stock ( $4 par value) $ 600,000 Additional paid-in capital 1,010,000 Retained earnings 870,000

On July 1, Davidson Corporation had the following capital structure:

Common stock ( $4 par value) $ 600,000
Additional paid-in capital 1,010,000
Retained earnings 870,000
Treasury stock 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 30 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.

image text in transcribed On July 1, Davidson Corporation had the following capital structure: 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 30 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

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