Question
On July 1, Davidson Corporation had the following capital structure: Common stock ( $4 par...
On July 1, Davidson Corporation had the following capital structure:
| Common stock ( $4 par value) | $ | 696,000 |
| Additional paid-in capital | 1,060,000 | |
| Retained earnings | 890,000 | |
| Treasury stock | 0 | |
Required:
Complete the table below for each of the two following independent cases: (Round "Par value per share" answers to 2 decimal places.)
Case 1: The board of directors declared and issued
a 50 percent stock dividend when the stock was selling at $6 per
share.
Case 2: The board of directors announced a 6-for-5 stock split (i.e., a 20 percent increase in the number of shares). The market price prior to the split was $6 per share.
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