Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3 Ignoring parts 1 & 2, On January 1, 2021, Bankole Corp, a publicly traded company, had these shareholders' equity accounts: Common shares (Unlimited number

image text in transcribed
3 Ignoring parts 1 & 2, On January 1, 2021, Bankole Corp, a publicly traded company, had these shareholders' equity accounts: Common shares (Unlimited number of shares authorized, 60,000 issued) $60,000 Contributed surplus $30,000 Retained earnings $1,200,000 On February 1 the company declared a 5 for 1 stock split to common shareholders. The stock's market price was $50.00. February 15th is the date of record and March 1" is the date of the split. On February 15th the stock's market price was $51.00 and on March 1", right before the stock split stock's market price was $52.00. Calculate the balance in number of common shares, dollars of common shares, dollars of contributed surplus and dollars of retained earnings after the above transactions at March 1, 2021, after the stock split. March 1, 2021 January 1, 2021 60,000 60000105 Number of common shares Common shares $60,000 Contributed surplus $30,000 Retained earnings $1,200,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Ethics for Scientists and Engineers

Authors: Edmund G. Seebauer, Robert L. Barry

1st Edition

9780195698480, 195134885, 195698487, 978-0195134889

Students also viewed these Accounting questions