Question
Inkom Company had the following balances in the equity section of its balance sheet: Common Stock (1000 shares, par $1) $1,000 Paid-in-Capital, Excess of Par
Inkom Company had the following balances in the equity section of its balance sheet:
| Common Stock (1000 shares, par $1) | $1,000 |
| Paid-in-Capital, Excess of Par | 39,000 |
| Retained Earnings | 50,000 |
Afterwards, Inkom declared and distributed a 2-for-1 stock split. At the time of the stock split, the fair value of the stock was $50 per share. Immediately after the completion of the stock split, determine the balance of Paid-in-Capital, Excess of Par?
Step by Step Solution
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Step: 1
Before the stock split the common stock was 1000 for 1000 shares which implies a ...
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
16th edition
0077664078, 978-0077664077, 78111048, 978-0078111044
