WileyPLUS × \\ e On October 31, The Sto: O Nirvana-Smells Like 4ix × i C Secure

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WileyPLUS × e On October 31, The Sto: O Nirvana-Smells Like 4ix × i C Secure | https://edugen.vvileyplus.com/ed WileyPLUS: MyWileyPLUSI Help | Contact Us I Loq Out WileyPLUS Financial Be&Managerial; Accounting 3e, wileyptus Custom Course for St. Cloud state university ACCOUNTING (ACC 291/292) Home Read, Study & Practice Gradebook ORION Assignment Open Assignment CALCULATOR FULL SCREEN pRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES Exercise K11-7 Your answer is partially correct. Try again. On October 31, the stockholders equity section of Ivanhoe Company's balance sheet consists of common stock $332,000 and retained earnings $393,000. Ivanhoe is considering the following two courses of action: Exercise K11-5 (1) Declaring a 6% stock dividend on the 83,000 $4 par value shares outstanding (2) Effecting a 2-for-1 stock split that will reduce par value to $2 per share 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. Ivanhoe Company's Balance Sheet Before Action After Stock Dividend After Stock Stockholders' equity Paid-in capital Retained earnings 393000 787200 394200 Total stockholders' equity 1451200 726200 Outstanding shares 83000 91980 3-53 PM 1)11/27/2017

Explanation / Answer

Before Action After Stock Dividend After Stock Split Stockholders equity    Paid-in capital 332000 411680 332000    Retained earnings 393000 313320 393000 Total stockholders equity   725000 725000 725000 Outstanding shares 83000 87980 166000

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