Which of the following statements on share transactions is CORRECT?

a. A share split involves a journal entry to record the increase number of shares issued and outstanding.

b. A share split increases the value of the shares, by the amount of the split, as shown in the equity section of the balance sheet.

c. A share dividend involves a journal entry to show the increased number and dollar value of shares issued and outstanding.

d. A share dividend requires a note to the financial statement indicating the increased number of issued and outstanding shares

Which of the following is TRUE about the effects of a share dividend?

a. Equity: Decreases; Retained Earnings: No Change

b. Equity: Decreases; Retained Earnings: Decreases

c. Equity: No Change; Retained Earnings: Decreases

d. Equity: No Change; Retained Earnings: No Change

From January 1 to May 31, Pelzer Company had 4,800 shares outstanding. From June 1 to October 31, the company had 5,220 shares outstanding. From November 1 to the end of November, 6,000 were outstanding. On December 1st, the company had declared a two-for-one stock split. Calculate the weighted-average number of shares outstanding at the end of the year December 31st.

a. 6,175

b. 7,175

c. 10,350

d. 11,220