Stock split and stock dividend (LO4) Austin Power Company has the following balance sheet:?
Hello, the question is as below and I have attached the photo of the questions as well, I need help with part B. Thank you!
Stock split and stock dividend (LO4) Austin Power Company has the following balance sheet:
Assets
Cash $ 60,000
Accounts receivable 300,000
Fixed assets 800,000
Total assets $1,160,000
Liabilities
Accounts payable $ 260,000
Notes payable 70,000
Common stock
100,000 shares @ $2 par 200,000
Capital in excess of par 150,000
Retained earnings 480,000
Total liabilities & Owners Equity $1,160,000
The firm’s has a market price of $11 a share.
b. Show 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.
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