Complete the table for three given independent cases

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Reference no: EM131771727

Question - On January 1, Biofuel Corporation had the following capital structure:

Common stock ($0.10 par value)

$60,000

Additional paid-in capital

1,900,00

Retained earnings

800,000

Treasury stock

0

Cash flows from financing activities

19,000

Required: Complete the table below for each of the three following independent cases:

Case 1: The board of directors declared a cash dividend of $0.02 per share.

Case 2: The board of directors declared and issued a 100 percent stock dividend when the stock was selling at $10 per share.

Case 3: The board of directors announced a 2-for-1 stock split. The market price prior to the split was $10 per share.

Items

Before any Dividend

After Cash Dividend

After Stock Dividend

After Stock Split

Common stock account

$60,000

$60,000

$120,000

$60,000

Par per share

$0.10

$0.10

$0.10

$0.05

Shares outstanding

600,000

600,000

 

1,200,000

Additional paid-in capital

$1,900,000

$1,900,000

 

$1,900,000

Retained earnings

$800,000

$788,000

$740,000

$800,000

Total stockholder's equity

$2,760,000

$2,748,000

 

$2,760,000

Cash flows from financing activities

$19,000

 

$19,000

$19,000

Reference no: EM131771727

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