Chrome File Edit View History Bookmarks People Window Help Chapter 11 -Connect C
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Chrome File Edit View History Bookmarks People Window Help Chapter 11 -Connect C ezto.mheducation.com/hm.tpx 9.09 points jack 10. On July 1, Davidson Corporation had the following capital structure Common stock ( $4 par value) Additional paid-in capital Retained eamings Treasury stock $ 750,000 890,000 Required: Complete the table below for each of en two following independent cases: (Round "Par value per share" answers to 2 decimal places) directors declared and issued a 30 percent stock dividend when the stock was at $6 per share. Case 2: The board of directors announced a 6-for-5 stock split (.e., a 20 percent increase in the number of shares). The market price prior to the split was $8 per share. Items Common stock account Par value per share Shares outstanding Addional pad-n captal Retained earnings Total stockholders equity 4.00 | 960,000 890.000 Hints References eBook & Resources Hint #lExplanation / Answer
Before dividend and split After stock dividend After stock split Common Stock Account 750,000 975,000 750,000 Par value per share 4/6*5 4 4 3.33 Shares outstanding 750000/100*120 187,500 243,750 225,000 Additional paid-in capital (given) 960,000 960,000 960,000 Retained earnings 890,000 665,000 890,000 Toatal stockholders’ equity 2,600,000 2,600,000 2,600,000
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