Exercise: Accounting for corporation A Saudi company was approved as a corporation in Jan 2018. The company decided to issue 5000 common shares in June at SR 20 per share. According to charter, the company is authorized to issue 50,000 shares. Required: What is the effect on financial position of the company under each of the following alternatives? The stock has par value of SR 20 The stock has a par value of SR 10 The stock has no par value and stock has a stated value of SR 5 per share - On Jan the board of directors declared 3 for 1 stock split of its 25 par value common stock. Note: use the accounting equation to