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Problem 18-8 Stock split and stock dividend (LO18-4] Squash Delight Inc. has the following balance sheet: $ 45,000 295,000 772,800 $1,112,000 Assets Cash Accounts receivable

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Problem 18-8 Stock split and stock dividend (LO18-4] Squash Delight Inc. has the following balance sheet: $ 45,000 295,000 772,800 $1,112,000 Assets Cash Accounts receivable Fixed assets Total assets Liabilities Accounts payable Notes payable Common stock (100,000 shares @ $2 par) Capital in excess of par Retained earnings Total liabilities & owners' equity $ 296,000 54,000 200,000 100,000 462,000 $1,112,000 + The firm's stock sells for $14 a share. a. Show the effect on the capital accounts of a two-for-one stock split. (Do not round intermediate calculations and round your answers to the nearest whole dollar) Effect of Stock Split Common stock Capital excess of par Retained earnings Total equity b. Show the effect on the capital accounts of a 10 percent stock dividend. Part bis separate from part a. In part b, do not assume the stock split has taken place. (Do not round intermediate calculations and round your answers to the nearest whole dollar.) Effect of Stock Dividend Common stock Capital excess of par Rotained earnings Total equity $ 0

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