Holton Company currently has 9,000 shares of $12 par common stock outstanding that had been issued at

Question:

Holton Company currently has 9,000 shares of $12 par outstanding that had been issued at an average price of $60 per share. It declares a three-for-one stock split.

Required
Prepare whatever entry is necessary to record the stock split, assuming the following independent alternatives:
1. The is reduced to $4 per share.
2. The is reduced to $6 per share.
3. The is reduced to $3 per share.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...