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

Question

On July 1, Jones Corporation had the following capital structure: Common Stock, par $1; 8,000,000 authorized shares, 160,000 issued and outstanding $ 160,000 Additional Paid-in Capital 108,000 Retained Earnings 188,000 Treasury Stock None Required: Complete the following table based on two independent cases involving stock transactions: (Round "per share" answers to 2 decimal places.) Case 1: The board of directors declared and issued a 100 percent stock dividend when the stock price was $6 per share. Case 2: The board of directors voted a 2-for-1 stock split. The stock price prior to the split was $6 per share.

Explanation / Answer

Authorized shares ( 8,000,000 * $1)          8,000,000 Issued and outstanding shares              160,000 Additional paid in capital              160,000 Retained earnings              108,000 Treasury stock              188,000 Dividend payable              160,000 2 for 1 stock cplit Issued and outstanding shares ( 160,000 * 2)              160,000 Total n umber of shares would be 320,000

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