On July 1, 2009, Jones Corporation had the following capital structure: Case 1:

Question

On July 1, 2009, Jones Corporation had the following capital structure:  

 

Case 1: The board of directors declared and issued a 10 percent stock dividend when the stock was selling at $7.0 per share

Case 2: The board of directors declared and issued a 100 percent stock dividend when the stock was selling at $7.0 per share.

Case 3: The board of directors voted a 2-for-1 stock split. The market price prior to the split was $7.0 per share.

 

Complete the following table based on three independent cases involving stock transactions mentioned above: (Round your per share to 1 decimal place.)

$1.0  

$   

$   

$   

180,000  

  

  

  

$  

$   

$   

$   

      Common stock, $1 par, 240,000 authorized shares
                                     120,000 issued and outstanding $120,000     Additional paid-in capital 101,000     Retained earnings 180,000     Treasury stock None  

Explanation / Answer

Before Stock After 10% Stock After 100% After Stock Split Transactions Dividend Stock Dividend Number of Shares Outstanding 120,000.00 132,000.00 240,000.00 240,000.00 Par per Share 1.00 1.00 1.00 0.50 Common Stock Account 120,000.00 132,000.00 240,000.00 120,000.00 Additional Paid in Capital 101,000.00 173,000.00 101,000.00 101,000.00 Retained Earnings 180,000.00 96,000.00 60,000.00 180,000.00 Total Stock Holders' Equity 401,000.00 401,000.00 401,000.00 401,000.00

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