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ID: 2331553 • Letter: R

Question

re I https//edugen. wileyplus.com/edugen/student/mainfr.uni r Faculity&Staff NDC Flash Version Check Higher Reach Macromedia Flash Se MathXL Browser Che US Weygandt, Accounting Principles, 120e Accounting Principles I & II (BU 155 1 Practice GradebookORION Downloadable eTextbook signment BACK NEX ME SSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION ES Exercise 14-4 31, the stockholders' equity section of Heins Company consists of common stock $315,000 and retained earnings S893,000. Heins is considering the following two courses of action: (1) dedaring a 6% stock dividend on share. The current market price is s14 per share. Prepare a tabular summany of the effects the 31,500, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that ill reduce par value to $5 per of the alternative actions on the components of stockholders' equity outstanding shares, and par value per share. Before Action After Stock Dividend After Stock Split Stockholders' equity Paid-in capital Common stock In excess of par Total paid-in capital Retained earnings Total stockholders' equitys Outstanding shares Par value per share Version 4.24.9 e g

Explanation / Answer

Workings

Before Action After Stock Dividend After Stock Split Paid In Capital Common Stock 315000 333900 315000 In Exess Par Value 0 7560 0 Total Paid In Capital 315000 341460 315000 Retained Earnings 893000 866540 893000 Total Stockholder Equity 1208000 1208000 1208000 Outstanding Shares 31500 33390 63000 Par Value per Share 10 10 5