Reference no: EM132698360

Question - Stock Dividends and Stock Splits

Whitacre Company's Stockholders' Equity section of the balance sheet on December 31, 2016, was as follows:

Common stock, $10 par value, 60,000 shares $600,000 issued and outstanding

Additional paid-in capital 480,000

Retained earnings 1,240,000

Total stockholders' equity $2,320,000

On May 1, 2017, Whitacre declared and issued a 15% stock dividend, when the stock was selling for $20 per share. Then on November 1, it declared and issued a 2-for-1 stock split.

Required outstanding shares at year-end- *138,000 par value per share - $5

Required - Develop the Stockholders' Equity category of Whitacre's balance sheet as of December 31, 2017.