Question

Problem 10-3B Indicate effect of stock dividends and stock splits (L010-6) The Athletic Village has done very well the past year, and its stock price is now trading at $90 per share Management is considering either a 100% stock dividend or a 2 for 1 stock split. Required: Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 3 decimal places.) Before After 100% Stock Dividend After 2-for-1 Stock Split 0 Common stock, $0.01 par value Additional paid-in capital T Total paid-in capital Retained earnings Total stockholders' equity Shares outstanding Par value per share Share price $ 11 28,990 29,001 15,400 $ 44,401 1,100 $ 0.01 $ 90 $ 0 $

Answer 1

			Before	after 100% stock dividend	after 2 for 1 stock split
common stock 0.01 par value			11	22	11
additional paid in capital			28990	28990	28990
total paid in capital			29001	29012	29001
retained earning			15400	15389	15400
total stockholder equity			44401	44401	44401
shares outstanding			1100	2200	2200
par value per share			0.01	0.01	0.005	0.01/2
share price			90	45	45
				(90*50%)	90/2