At December 31, 2014, Green Company and Blue Company have identical amounts of common stock and retained

Question:

At December 31, 2014, Green Company and Blue Company have identical amounts of common stock and retained earnings as follows:
Common Stock, $10 par, 50,000 shares authorized, 9,000 issued, 9,000 outstanding
Retained Earnings, $500,000
At December 31, 2014, Green Company declares and issues a 100% stock dividend, while Blue Company declares and issues a 2-for-1 stock split.

Required
Determine for each company the following amounts as of January 1, 2015:
_______ Number of shares of common stock outstanding
_______ Par value per share of the common stock
_______ Total amount reported in Common Stock account
_______ Retained earnings

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,...

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