On October 31, the stockholders' equity section of Crane Company's balance sheet consists of common...
80.2K
Verified Solution
Link Copied!
Question
Accounting
On October 31, the stockholders' equity section of Crane Company's balance sheet consists of common stock $648,000 and retained earnings $391,000. Crane is considering the following two courses of action: (1) Declaring a 6% stock dividend on the 81,000 $8 par value shares outstanding Effecting a 2-for-1 stock split that will reduce par value to $4 per share. (2) The current market price is $16 per share. Prepare a tabular summary of the effects of the alternative actions on the company's stockholders' equity and outstanding shares. Crane Company's Balance Sheet Before Action After Stock Dividend After Stock Split Stockholders' equity Paid-in capital $ GA $ $ $ Retained earnings Total stockholders' equity $ $ $ HA Outstanding shares
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
