Wildhorse Co$.$ has had $4$ years of record earnings. Due to this success, the market price of its $415,000$ shares of $$2$ par value common stock has increased from $$14$ per share to $$51.$ During this period, paid$-$in capital remained the same at $$2,490,000.$ Retained earnings increased from $$3,735,000$ to $$24,900,000.$ CEO Don Ames is considering either $(1)$ a $15\%$ stock dividend or $(2)$ a $2-$for$-1$ stock split.

He asks you to show the before$-$and$-$after effects of each option on $($a$)$ retained earnings, $($b$)$ total stockholders' equity, and $($c$)$ par value per share.

$($a$)$

$1.$ Stock dividend $-$ retained earnings

$

$2.$

$2-$for$-1$ stock split $-$ retained earnings

$($b$)$

Original Balances

After Dividend

After Split

Paid$-$in capital

$$

$

$

E SUPPORT

Retained earnings

Total stockholders' equity