Calculate after stock dividend for retainend


On October 31 the stockholders' equity section of Lynch Company's balance sheet consists of common stock $704,000 and retained earnings $406,000. Lynch is considering the following two courses of action: (1) declaring a 5% stock dividend on the 88,000 $8 par value shares outstanding or (2) effecting a 2-for-1 stock split that will reduce par value to $4 per share. The current market price is $14 per share. (Round answers to 0 decimal places, e.g. 20,550.)Calculate after stock dividend for retainend earnings, and paid in capital, and total stockholders' equity, outstanding shares.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Calculate after stock dividend for retainend
Reference No:- TGS0704486

Expected delivery within 24 Hours