E11-14 Comparing 100 Percent Stock Dividend and 2-for-1 Split [LO 11-3]

On July 1, Jones Corporation had the following capital structure:

Common Stock, par $1; 8,000,000 authorized shares, 160,000 issued and outstanding	$	160,000
Additional Paid-in Capital		102,000
Retained Earnings		182,000
Treasury Stock		None

Required:

Complete the following table based on two independent cases involving stock transactions: (Round "per share" answers to 2 decimal places.)

Case 1:	The board of directors declared and issued a 100 percent stock dividend when the stock price was $7 per share.
Case 2:	The board of directors voted a 2-for-1 stock split. The stock price prior to the split was $7 per share.

		Case 1	Case 2
Items	Before Stock Transactions	After 100% Stock Dividend	After Stock Split
Number of Shares Outstanding	160,000	320,000
Par Per Share	$1.00	$1.00
Common Stock Account	$160,000
Additional Paid-in Capital	102,000
Retained Earnings	182,000
Total Stockholders' Equity	$444,000	$0	$0