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Squash Delight Inc. has the following balance sheet: Assets Cash Accounts receivable Fixed assets $90,000 339,000 732,000 Total assets $ 1,161,000 Liabilities Accounts payable Notes
Squash Delight Inc. has the following balance sheet: Assets Cash Accounts receivable Fixed assets $90,000 339,000 732,000 Total assets $ 1,161,000 Liabilities Accounts payable Notes payable Common stock (100,000 shares$2 par) Capital in excess of par Retained eamings $302,000 52,000 200,000 100,000 507,000 Total liabilities& owners' equity $ 1,161,000 The firm's stock sells for $10 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 b is separate from part a. In part b do not assume the stock split has taken place. (Do not round intermediate calculations and rouno your answers to the nearest whole dollar.) Effect of Stock Dividend Common stock Capital excess of par Retained earmings Total equity
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