On July 1, Jones Corporation had the following capital structure: Common Stock,
ID: 2433027 • Letter: O
Question
On July 1, Jones Corporation had the following capital structure: Common Stock, par $1; 8,000,000 authorized shares, 110,000 issued and outstanding Additional Paid-in Capital Retained Earnings Treasury Stock $110,000 92,000 172,000 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 $7 per share. Case 2: The board of directors voted a 2-for-1 stock split. The stock price prior to the split was $7 per share. Case 1 Case 2 Before Stock After 100% Transactions Dividend After 100% After Stock Items Number of Shares Outstanding Par Per Share Common Stock Account Additional Paid-in Capital Retained Earnings 1.00 92,000 172,000 Total Stockholders' EquityExplanation / Answer
Table :
Case 1 Case 2 Items Befor stock transaction After 100% Stock dividend After stock split Par per share 1 1 0.50 Common Stock account 110000 220000 110000 Additional paid in capital 92000 92000 92000 Retained earnings 172000 62000 172000 Total Stockholder's equity 374000 374000 374000