On July 1, 2017, Jones Limited had the following share structure:

Common shares (par $1; 200,000 authorized shares; 150,000issued and outstanding)............................................................................$150,000Contributed surplus.......................................................................................88,000Retained earnings........................................................................................172,000

Required:

Complete the following table based on three independent cases involving share transactions:

Case 1: The board of directors declared and issued a 10 percent stock dividend when the share price was $8 per share.

Case 2: The board of directors declared and issued a 100 percent stock dividend when the share price was $8 per share.

Case 3: The board of directors voted a 2-for-1 stock split. The share price prior to the split was $8 per share.

Transcribed Image Text:

Case 1 Case 2 Case 3 After 10% Stock After 100% Stock Dividend After Stock Before Share Transactions Items Dividend Split Number of shares outstanding Par per share Common shares account Contributed surplus Retained earnings Total shareholders' equity 2$ 2$ 2$ 88,000 172,000