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On January 15, 2020, the board of directors of Miz Corporation voted to consolidate its outstanding common shares on the basis of one post-consolidation common
On January 15, 2020, the board of directors of Miz Corporation voted to consolidate its outstanding common shares on the basis of one post-consolidation common share for every 20 pre-consolidation common shares (that is, a one-for-twenty reverse stock split). Miz Corporation common shares had a market price on January 15, 2020, of $0.60 per share. The shareholders' equity section of the statement of financial position of Miz Corporation at December 31, 2019, is given below: Shareholders' equity: Common shares, unlimited authorized, 10,540,000 shares issued and outstanding Retained earnings (deficit) Total shareholders' equity $52,700,000 (5,320,000) $47,380,000 What accounting entry will be required for the consolidation? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter Ofor the amounts.) Account Titles and Explanation Debit Credit
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