Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
On July 1, Davidson Corporation had the following capital structure: stock ($1 par $600,000 Common stock ( $1 par value) Additional paid-in capital Retained earnings Treasury stock 900,000 700,000 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 50 percent stock dividend when the stock was selling at $12 per share Case 2 The board of directors announced a 6-for-5 stock split (le, a 20 percent increase in the number of shares). The market price prior to the split was $12 per share. Items After Stock Split $ 600.000 Common stock account Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders equity Before Dividend and Split $ 600,000 $ 1.00 600,000 S 900,000 $ 700.000 5 2.200.000 After Stock Dividend $ 900,000 $ 1.00 900.000 $ 900,000 S 900,00 700 000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Internal Auditors Guide To Risk Assessment

Authors: Rick A. Wright Jr.

2nd Edition

1634540158, 9781634540155

More Books

Students also viewed these Accounting questions