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E11-23 (Algo) Comparing Stock Dividends and Stock Splits LO11-6 On July 1, Davidson Corporation had the following capital structure: Common stock ( 85 par value) Additional paid in capital Retained earnings Treasury stock $70,000 900,000 880,000 Required: Complete the table below for each of the two following independent cases: ((Round "Par value per share" amounts to 2 decimal places.) Case 1: The board of directors declared and issued a 40 percent stock dividend when the stock was selling at $7 per share Case 2 The board of directors announced a 6-for-5 stock split (... 20 percent increase in the number of shares). The market price prior to the split was $7 per share. Answer is complete but not entirely correct. Before After After Items Dividend Stock Stock and Split Dividend Split Common stock account s 708,000S 091,200 $ 708,000 Par value per share $ 5.00 5.00 5.00 % Shares outstanding 141.000 247 800 X 109,020 Additional paid-in s 200.000 S000,000 $ 900.000 capital Retained earnings 15 880.000 S483.520 $ 380.000 Total stockholders $ 2.488.000 5 1,688,000 $ 52.488.000 equity