Question

my work mode: This Snows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question E11-23 Comparing Stock Dividends and Stock Splits LO11-6 On July 1, Davidson Corporation had the following capital structure: Common stock ( $3 par value) $ 738,000 Additional paid-in capital 910,000 870,000 Retained earnings Treasury stock Required: Complete the table below for each of the two following independent cases: (Round "Par value per share" answers to 2 decimal places.) Case 1: The board of directors declared and issued a 30 percent stock dividend when the stock was selling at $5 per share. Case 2: The board of directors announced a 6-for-5 stock split (ie, a 20 percent increase in the number of shares). The market price prior to the split was $5 per share. Items Common stock account Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders' equity Answer is complete but not entirely correct. Before After After Dividend Stock Stock and Split Dividend Split $ 738,000 $ 959,400 $ 738,000 $ 3.00 $ 3.00 $ 2.50 246,000 319,800 295,200 910,000 $ 1,057,600 Ⓡ$ 910,000 870,000 $ 501,000 $ 870,000 $ 2,518,000 $ 2,518,000 $ 2,518,000 < Prev 14 of 14 Next >

Answer 1

items	beforestock dividend & split	After stock dividend	after stock split
common stock account	738000	959400	738000
par value per share	3	3	2.5
share outstanding	246000	319800	295200
additional paid in capital	910000	910000	910000
retained earning	870000	648600	870000
total stockholders equity	2518000	2518000	2518000