Question
At the time that Company issued a 2-for-1 stock split, the company had 1,100 shares of $5 par value common stock outstanding. Stockholders' equity also
At the time that Company issued a 2-for-1 stock split, the company had 1,100 shares of $5 par value common stock outstanding. Stockholders' equity also included $15,400 of additional paid in capital in excess of par value and $22,000 of retained earnings. Immediately after the stock split,(Do not round intermediate calculations.)
A. the balance in the retained earnings account would be $16,500.
B. the balance in the common stock account would be $5,500.
C. the amount of paid-in capital would be $22,000.
D. the balance in the common stock account would be $11,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started