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On July 1, Davidson Corporation had the following capital structure: Common stock ( $5 par value) $606,000 1,020,000 Additional paid-in capital Retained earnings 840,000 Treasury
On July 1, Davidson Corporation had the following capital structure: Common stock ( $5 par value) $606,000 1,020,000 Additional paid-in capital Retained earnings 840,000 Treasury stock 0 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 50 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. After Items Answer is not complete. Before After Dividend Stock Stock and Split Dividend Split $ 606,000 $ 909,000 $ 5.00 5.00 121,200 181,900 X Common stock account Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders equity $ 1,020,000 $ 1,020,000 $ 424,200 X $ 840,000 $ 2,466,000
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