PROBLEM 2 - Stock Splits & Stock Dividends Assume that a company has the following information: Common Stock Information: # of shares issued and outstanding Par value per share Stockholders' Equity section of the Balance Sheet: Common Stock Additional Paid in Capital Retained Earnings Total Stockholders' Equity 20,000 $9 $180,000 $3,000,000 $4,820,000 $8,000,000 The company has the option of EITHER announcing a 3:1 stock split OR declaring a 200% stock dividend. Fill in the blanks below to show the stockholders' equity balances under each of these options. Current Situation After 3:1 After Stock Split 200% Stock Dividend Common Stock Information: #of shares issued and outstanding 20,000 Par value per share $9 Stockholders' Equity section of the Balance Sheet: Common Stock $180,000 Additional Paid in Capital $3,000,000 Retained Earnings $4,820,000 Total Stockholders' Equity $8,000,000