Question
On July 1, Davidson Corporation had the following capital structure: Common stock ( $1 par value) $ 600,000 Additional paid-in capital 900,000 Retained earnings 700,000
On July 1, Davidson Corporation had the following capital structure:
| Common stock ( $1 par value) | $ | 600,000 |
| Additional paid-in capital | 900,000 | |
| Retained earnings | 700,000 | |
| 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 $12 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 $12 per share.
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Fundamental financial accounting concepts
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
8th edition
978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365
