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On October 31, the stockholders' equity section of ESCAPE Company consists of common stock TL600.000 and retained earnings TL 900.000. ESCAPE is considering the following
On October 31, the stockholders' equity section of ESCAPE Company consists of common stock TL600.000 and retained earnings TL 900.000. ESCAPE is considering the following two courses of action: (1) declaring a 5% stock dividend on the 60.000, TL10 par value shares outstanding, or (2) effecting a 2-for-1 stock split (2 shares in each share) that will reduce par value to TL5 per share. The current market price is TL14 per share. Complete the tabular summary of the effects of the alternative actions on the components of stockholders' equity and outstanding shares. Stockholders' equity Before Action After Stock Dividend After Stock Split Paid-in capital (Share Capital) Additional Paid-In Capital Retained earnings Total stockholders equity Outstanding shares
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