Question
On July 1, Davidson Corporation had the following capital structure: Common stock ( $5 par value)$756,000 Additional paid-in capital1,080,000 Retained earnings790,000 Treasury stock0 Required: Complete
On July 1, Davidson Corporation had the following capital structure:
Common stock ( $5 par value)$756,000
Additional paid-in capital1,080,000
Retained earnings790,000
Treasury stock0
Required:
Complete the table below for each of the two following independent cases:(Round "Par valueper share" answers to 2 decimal places.)
Case 1: The board of directors declared and issued a 30 percent stock dividend when the stock was selling at $7 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 $7 per share.
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