On July 1, Jones Corporation had the following capital structure Common Stock, p
ID: 2560738 • Letter: O
Question
On July 1, Jones Corporation had the following capital structure Common Stock, par $1; 8,000,000 authorized shares, 145,000 issued and outstanding Additional Paid-in Capital Retained Earnings Treasury Stock $145,000 99,000 179,000 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 $8 per share Case 2: The board of directors voted a 2-for-1 stock split. The stock price prior to the split was $8 per share Case 2 After Stock Split Case 1 After 100% Before Stock Transactions Dividend Items Number of Shares Outstanding Par Per Share Common Stock Account Additional Paid-in Capital Retained Earnings Total Stockholders' Equity 1.00 99,000 179,000Explanation / Answer
Table after the two independent cases will be:
Case 1 Case 2 Items Before Stock Transactions After 100% Stock Dividend After Stock Split Number of shares outstanding 145,000 290000 290,000 Par Per Share 1 1 0.5 Common Stock 145,000 290,000 145000 Additional paid in capital 99,000 99,000 99,000 Retained earnings 179,000 34,000 179,000 Total stockholders equity 423,000 423,000 423,000