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On July 1, Davidson Corporation had the following capital structure Common stock ($4 par value) Additional paid-in capital Retained earnings Treasury stock $ 630,000 1,070,000
On July 1, Davidson Corporation had the following capital structure Common stock ($4 par value) Additional paid-in capital Retained earnings Treasury stock $ 630,000 1,070,000 740,000 Required: Complete the table below for each of the two following independent cases: (Round "Par value per 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 $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 $6 per share Before Dividend and Split After Stock Dividend After Stock Split Items 630,000 819,000$ 630,000 Common stock account Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders' equity 4.00$ 4.00 157,500 $1,070,000 740,000 204,750
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