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Complete the given table for independent cases

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Question - On July 1, Davidson Corporation had the following capital structure:

Common stock ($5 par value)

$714,000

Additional paid-in capital

980,000

Retained earnings

790,000

Treasury stock

0

Required: Complete the table below for each of the two following independent cases:

Case 1: The board of directors declared and issued a 50 percent stock dividend when the stock was selling at $7 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 $7 per share.

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Reference no: EM132188472

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