Question
On July 1, Davidson Corporation had the following capital structure: Common stock ( $4 par value) $ 726,000 Additional paid-in capital 1,020,000 Retained earnings 760,000
On July 1, Davidson Corporation had the following capital structure:
| Common stock ( $4 par value) | $ 726,000 |
|---|---|
| Additional paid-in capital | 1,020,000 |
| Retained earnings | 760,000 |
| 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 $6 per share.
Case 2: The board of directors announced a 6-for-5 stock split. The market price prior to the split was $6 per share.
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Financial Accounting An International Introduction
Authors: David Alexander, Christopher Nobe
6th Edition
1292102993, 978-1292102993
