Problem: On Oct 31 the stockholder's equity section of Gregg Company's balance sheet consists of common stock $1,074,000 and retained earnings $405,700.
Gregg is considering the following two courses action:
(1) declaring a 5% stock dividend on the 89,500 $12 par value shares outstanding of
(2) effecting a 2-for-1 stock split that will reduce par value to $6 per share. The current market price is $18 per share.
(Round answers to 0 decimal places, e.g. 20,550).
Complete the tubular summary of the effect of the alternative actions on the company's stockholder equity, outstandin shares.
Before Action After Stock Dividend After Stock Split
Stockholder's
equity ____________________________________
Paid-in capital_________________________________
B. Retained earnings_______________________________
Total stockholder's equity __________________________
Outstanding shares________________________________