A firms balance sheet has the following entries: Cash...................... $10,000,000 Total liabilities................. 30,000,000 Common stock ($5 par;

Question:

A firm’s has the following entries:
Cash...................... $10,000,000
Total liabilities................. 30,000,000
Common stock ($5 par; 2,000,000 shares outstanding).. 10,000,000
Additional paid-in capital............ 3,000,000
Retained earnings.............. 42,000,000
What will be each of these entries after:
a. a three-for-one stock split?
b. a $1.25 per share cash a 10 percent stock (current price of the stock is $15 per share)?
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