1.66 points eBook Hint Print References E11-23 (Algo) Comparing Stock Dividends and Stock Splits LO11-6 On July 1, Davidson Corporation had the following capital structure. Common stock ($4 par value) Additional paid-in capital Retained earnings Treasury stock Required: Complete the table below for each of the two following independent cases: ((Round "Par value per share" amounts to 2 decimal places.) Items Case 1: The board of directors declared and issued a 50 percent stock dividend when the stock was selling at $6 per share. Case 2: The board of directors announced a 6-for-5 stock split (i.e., a 20 percent increase in the number of shares). The market price prior to the split was $6 per share. Common stock account Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders' equity $ 732,000 1,080,000 710,000 $ $ 0 Before Dividend After Stock After Stock and Split Dividend Split 732,000 4.00 $ $ 1,080,000 710,000

E11-23 (Algo) Comporing Stock Dividends and Stock Splits LO11-6 On July 1, Davidson Corporation had the following capital structure: Required: Complete the table below for each of the two following independent cases: (Round "Por value per share" amounts to 2 decimal plocesi) Cose 1 The board of directors declared and issued a 50 percent stock dividend when the stock was seling at 56 per shate. Case 2. The board of directors announced a 6 -for-5 stock spit (ce, a 20 percent increase in the number of shares). The masket price: prior to the 5plit was 56 per share