Question
Ignoring parts 1&2, On January 1, 2020, Dunder Mifflin Corp, a publicly traded company, had these shareholders equity accounts: Common shares (Unlimited number of shares
Ignoring parts 1&2, On January 1, 2020, Dunder Mifflin Corp, a publicly traded company, had these shareholders equity accounts: Common shares (Unlimited number of shares authorized, 15,000 issued) $600,000 Contributed surplus $25,000 Retained earnings $200,000 On February 1 the company declared a 5 for 1 stock split to common shareholders. The stocks market price was $100.00. February 15th is the date of record and March 1st is the date of payment. On February 15th the stocks market price was $100.00 and on March 1st the stocks market price was $25.00. 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 st , 2020, after the stock split. January 1, 2020 March 1, 2020 Number of common shares 15,000 Common shares $600,000 Contributed surplus $25,000 Retained earnings $200,000
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