Question
Vega Company reported the following shareholders equity section in its most recent balance sheet. Shareholders Equity Common Stock ($1 par, 2,000,000 shares authorized, 100,000 shares
Vega Company reported the following shareholders equity section in its most recent balance sheet. Shareholders Equity Common Stock ($1 par, 2,000,000 shares authorized, 100,000 shares issued, 95,000 shares outstanding) $ 100,000 Additional Paid-in Capital 1,900,000 Total Contributed Capital 2,000,000 Retained Earnings 3,100,000 Total Contributed Capital and Retained Earnings 5,100,000 Less: Cost of Treasury Stock (5,000 shares) (75,000) Total shareholders Equity 5,025,000 Prepare the Shareholders Equity section for Vega Company if a) Vega declares 100% stock dividend; b) Vega does a 2-for-1 stock split. Write any journal entry necessary..
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