Squash Delight Inc. has the following balance sheet:
Assets
Cash $ 45,000
Accounts receivable 295,000
Fixed assets 772,000
Total assets $ 1,112,000
Liabilities
Accounts payable $ 296,000
Notes payable 54,000
Common stock (100,000 shares @ $2 par) 200,000
Capital in excess of par 100,000
Retained earnings 462,000
Total liabilities & owners' equity $ 1,112,000
The firm's stock sells for $14 a share.
a. What is the effect on the capital accounts of a two-for-one stock split? (Do not round intermediate calculations and round your answers to the nearest whole dollar.)
Common stock: _________
Capital Excess of par:___________
Retained Earnings:____________
Total equity:______________
b. What is the effect on the capital accounts of a 10 percent stock dividend? Part b is separate from part a. In part b do not assume the stock split has taken place. (Do not round intermediate calculations and round your answers to the nearest whole dollar.)
Common stock: _________
Capital Excess of par:___________
Retained Earnings:____________
Total equity:______________