Question: The answer for A is correct. Just need help on B. Squash Delight Inc. has the following balance sheet: Assets Cash $ 35,000 Accounts receivable


The answer for A is correct. Just need help on B.


Squash Delight Inc. has the following balance sheet: Assets Cash $ 35,000 Accounts receivable 267,000 Fixed assets 796,000 Total assets $1,098,000 Liabilities Accounts payable 5 344,000 Notes payable 52,000 Common stock (100,000 shares 9 $2 par) 200,000 Capital in excess of par 100,000 Retained earnings 402,000 Total liabilities & owners' equity $1,098,000 [ The firm's stock sells for $11 a share. a. Show the effect on the capital accounts of a two-for-one stock split. (Do not round intermediate calculations and round your answers to the nearest whole dollar.) Effect of Stock Split Common stock 15 200,000 Capital excess of par $ 100,000 Retained earnings $ 402,000 Total equity $ 702,000 b. Show the effect on the capital accounts ofa 10 percent stock dividend. Part bis separate from part a. In part b, do not assume the stock split has taken place. (Do not round intermediate calculations and round your answers to the nearest whole dollar.) Effect of Stock Dividend Common stock Capital excess of par Retained earnings Total equity
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