CIELA W WUIMU. MIS SUUWS WOL IS LOMELLUI NICONELL IUILE WIN YOU HAVE LUMIEGU SU...
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CIELA W WUIMU. MIS SUUWS WOL IS LOMELLUI NICONELL IUILE WIN YOU HAVE LUMIEGU SU 13 E11-23 Comparing Stock Dividends and Stock Splits LO11-6 7.72 points On July 1, Davidson Corporation had the following capital structure: S600 Common stock ( $1 par value) Additional paid-in capital Retained earnings Treasury stock $ 600,000 900,000 700,000 Required: Complete the table below for each of the two following Independent cases: (Round "Par value per share" answers to 2 decimal places.) Case 1: The board of directors declared and issued a 50 percent stock dividend when the stock was selling at $12 per share. Case 2: The board of directors announced a 6-for-5 stock split (.e., a 20 percent increase in the number of shares). The market price prior to the split was $12 per share. Items Common stock account Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders' equity X Answer is complete but not entirely correct. Before After After Dividend Stock Stock and Split Dividend Split $ 600,000 $ 500,000 $ 600,000 $ 1.00 1.00 10.00 600,000 625,000 720,000 900,000 $1,175,000 $ 900,000 $ 700,000 $ 400,000 $ 580,000 $ 2,200,000 $ 2,200,000 $ 2,200,000
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