On October 31, the stockholders\' equity section of wdhorse Co consists of commo

Question

On October 31, the stockholders' equity section of wdhorse Co consists of common stock $330,000 and retained eanings 60 wildhorse s considering the following two courses of action: (3) dedaring a 7% stack dividend on the 33,000, 510 par value shares outstandner a) effiecting a 2-for-t stock selt that wll redace par value to 55 pr share. $14 per share. Prepare a tabuler summary of the efects of the alternative actions on the components ofl stockholders equity,eustanding shares, and nar value per share Paid in capital In excess of par Total paid-in capital Retained earnings Totali stockhelders equitys Outstanding shares Par value per share Cick if yous woald ke to Show Work for this question: C ho Work Ask me anything

Explanation / Answer

Tabular :

Before action After stock dividend After stock split Stockholder's equity Common Stock 330000 353100 330000 In excess of par 9240 Total paid in capital 330000 362340 330000 Retained earnings 896000 863660 896000 Total Stockholder's equity 1226000 1226000 1226000 Outstanding shares 33000 35310 66000 Par value per share 10 10 5

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