Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Effective May 1 , the shareholders of Chiefs Corporation approved a 2 - for - 1 stock split of the companys common stock. Prior to

Effective May 1, the shareholders of Chiefs Corporation approved a 2-for-1 stock split of the companys common stock. Prior to the stock split, Chiefs shareholders equity items were as follows: Common Stock, $10 par (1,000,000 shares authorized, 50,000 shares outstanding) $500,000 Additional paid-in capital common stock 600,000 Retained Earnings 1,350,000 a. What is the balance in each of the following accounts AFTER the stock split? common stock, additional paid-in capital, retained earnings, # of o/s shares, and Par Value per share b. Assume that instead of a 2-for-1 stock split, Chiefs declared a 100% stock dividend. Provide the journal entries at the date of declaration and the date of distribution. What is the balance in each account after the 100% stock dividend.?

Step by Step Solution

3.37 Rating (144 Votes )

There are 3 Steps involved in it

Step: 1

a After the 2for1 stock split 1 Common Stock The number of outstanding shares will double to 100000 ... 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

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.

9th Canadian Edition, Volume 2

470964731, 978-0470964736, 978-0470161012

More Books

Students also viewed these Accounting questions