On July 1, 2010, Jones Corporation had the following capital structure: Common s

Question

On July 1, 2010, Jones Corporation had the following capital structure: Common stock, par $1,232,000 authorized shares 50,000 issued and outstanding Additional paid-in capital Retained earnings Treasury stock $150,000 93,000 89,000 None Required: Complete the following table based on three independent cases involving stock transactions (Round your par value answers to 2 decimal places. Omit the "$" sign in your response): Case 1: The board of directors declared and issued a 10 percent stock dividend when the stock price was Case 2 The board of directors declared and issued a 100 percent stock dwidend when the stock price was Case 3. The board of directors voted a 2-for-1 stock split. The stock price prior to the split was $9 per $9 per share $9 per share share

Explanation / Answer

Case 1 Case2 Case 3 Items Before Stock Transactions After 10% Stock Dividend After 100% Stock Dividend After Stock Split Number of shares outstanding 150000 165000 300000 300000 Par per share $1 $1 $1 $0.50 Common Stock 150000 165000 300000 150000 Additional Paid-in Capital 93000 213000 132000 93000 Retained Earnings 189000 54000 0 189000 Total Stockholders' Equity 432000 432000 432000 432000

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