On October 31, the stockholders' equity section of Cullumber Company consists of common stock $260,000 and retained earnings $882,000. Cullumber is considering the following two courses of action: (1) declaring a 4% stock dividend on the 26,000, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $16 per share. Prepare a tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and par value per share. Stockholders' equity Paid-in capital Common stock In excess of par Total paid-in capital Retained earnings Total stockholders' equity $ Outstanding shares $ Par value per share Before Action LA $ After Stock Dividend $ $ $ After Stock Split

On October 31 , the stockholders' equity section of Cullumber Company consists of common stock $260,000 and retained earnings $882,000. Cullumber is considering the following two courses of action: (1) declaring a 4% stock dividend on the 26,000,$10 par value shares outstanding, or (2) effecting a 2 -for-1 stock split that will reduce par value to $5 per share. The current market price is $16 per share: Prepare a tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and par value per share