Question
PROBLEM 2 Stock Splits & Stock Dividends Assume that a company has the following information: Common Stock Information: # of shares issued and outstanding 20,000
PROBLEM 2 Stock Splits & Stock Dividends
| Assume that a company has the following information: | |||
| Common Stock Information: |
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| # of shares issued and outstanding |
| 20,000 |
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| Par value per share |
| $9 |
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| Stockholders Equity section of the Balance Sheet: | |||
| Common Stock |
| $180,000 |
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| Additional Paid in Capital |
| $3,000,000 |
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| Retained Earnings |
| $4,820,000 |
|
| Total Stockholders Equity |
| $8,000,000 |
|
The company has the option of EITHER announcing a 3:1 stock split OR declaring a 200% stock dividend.
Fill in the blanks below to show the stockholders equity balances under each of these options.
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Current Situation |
| After 3:1 Stock Split |
| After 200% Stock Dividend |
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| Common Stock Information: |
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| # of shares issued and outstanding |
| 20,000 |
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| Par value per share |
| $9 |
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| Stockholders Equity section of the Balance Sheet: |
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| Common Stock |
| $180,000 |
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| Additional Paid in Capital |
| $3,000,000 |
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| Retained Earnings |
| $4,820,000 |
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| Total Stockholders Equity |
| $8,000,000 |
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Intermediate Accounting Reporting and Analysis
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
2nd edition
9781305727557, 1285453824, 9781337116619, 130572755X, 978-1285453828
