On July 1, Davidson Corporation had the following capital structure: Common stock ($4 par value) Additional...

 

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On July 1, Davidson Corporation had the following capital structure: Common stock ($4 par value) Additional paid-in capital Retained earnings Treasury stock Required: $ 678,000 960,000 840,000 Complete the table below for each of the two following independent cases: Note: Round "Par value per share" amounts to 2 decimal places. Case 1: The board of directors declared and issued a 60 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. The market price prior to the split was $6 per share. Before Dividend Items and Split After Stock Dividend After Stock Split Common stock account $ 678,000 Par value per share $ 4.00 Shares outstanding Additional paid-in capital $ 960,000 Retained earnings $ 840,000 Total stockholders' equity On July 1, Davidson Corporation had the following capital structure: Common stock ($4 par value) Additional paid-in capital Retained earnings Treasury stock Required: $ 678,000 960,000 840,000 Complete the table below for each of the two following independent cases: Note: Round "Par value per share" amounts to 2 decimal places. Case 1: The board of directors declared and issued a 60 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. The market price prior to the split was $6 per share. Before Dividend Items and Split After Stock Dividend After Stock Split Common stock account $ 678,000 Par value per share $ 4.00 Shares outstanding Additional paid-in capital $ 960,000 Retained earnings $ 840,000 Total stockholders' equity

Answer rating: 100% (QA)

Here is the completed table for the two cases Items Before Dividend and Split After Stock Dividend A... View the full answer