Question
Ignoring parts 1 & 2, On January 1, 2021, Bankole Corp, a publicly traded company, had these shareholders equity accounts: Common shares (Unlimited number of
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) Contributed surplus Retained earnings
$60,000
$30,000 $1,200,000
On February 1 the company declared a 5 for 1 stock split to common shareholders. The stocks market price was $50.00. February 15th is the date of record and March 1st is the date of the split. On February 15th the stocks market price was $51.00 and on March 1st, right before the stock split stocks 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 1st, 2021, after the stock split.
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