On October 31, the stockholders' equity section of Wildhorse Company consists of common stock $300,000 and retained earnings $890,000. Wildhorse is considering the following two courses of action: (1) declaring a 4% stock dividend on the 30,000, $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 $ $ After Stock Dividend $ $ After Stock Split [1]

On October 31 the stockholders' equity section of Wildhorse Company consists of common stock $300,000 and retained earnings $890000. Wildhorse is considering the foliowing two courses of action (1) declaring a 4% stock dividend on the 30,000,$10 par value shares outstandine 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 parvalue per share