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

Question

On July 1, Jones Corporation had the following capital structure Common Stock, par $1; 8,000,000 authorized shares, 150,000 issued and outstanding Additional Paid-in Capital Retained Earnings Treasury Stock $150,000 100,000 180,000 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 Case 2 The board of directors voted a 2-for-1 stock split. The stock price prior to the split was $7 per $7 per share share. Case 1 Case 2 Before Stock After 100% Transactions Dividend Items Stock Split Number of Shares Outstanding Par Per Share Common Stock Account Additional Paid-in Capital Retained Earnings Total Stockholders' Equity 1.00 100,000 80,000 S 280,000

Explanation / Answer

Solution :-

Items Before Stock Transactions Case1- After 100% Stock Dividend Case2- After Stock Split No. of Shares Outstanding 150000 300000 300000 Par Per Share $1 $1 $0.5 Common Stock Account $150000 $300000 $150000 Additional Paid up Capital $100000 $100000 $100000 Retained Earnings $180000 $30000 $180000 Total Stockholder's Equity $430000 $430000 $430000

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