On July 1, Davidson Corporation had the following capital structure: ...
50.1K
Verified Solution
Link Copied!
Question
Accounting
On July 1, Davidson Corporation had the following capital structure:
Common stock ( $3 par value)
$
636,000
Additional paid-in capital
1,080,000
Retained earnings
720,000
Treasury stock
0
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 30 percent stock dividend when the stock was selling at $5 per share.
Case 2: The board of directors announced a 6-for-5 stock split (i.e., a 20 percent increase in the number of shares). The market price prior to the split was $5 per share.
Items Before Dividend and Split $ 636,000 $ 3.00 After Stock After Stock Dividend Split | $ 636,000 $ 3.00 $ 2.50 Common stock account Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders' equity $ $ 1,080,000 720,000 | $ $ 1,080,000 720,000
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
