On October 31, The Stockholders’ Equity Section

E11-7 On October 31, the stockholders’ equity section of Manolo Company’s balance sheet consists of common stock $648,000 and retained earnings $400,000. Manolo is considering the following two courses of action: (1) declaring a 5% stock dividend on the 81,000 $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 $17 per share.InstructionsPrepare a tabular summary of the effects of the alternative actions on the company’s stockholders’ equity and outstanding shares. Use these column headings: Before Action, After Stock Dividend, and After Stock Split

Originally posted 2018-07-11 22:53:17. Republished by Blog Post Promoter