Question: Rail Company announced a 2 for 1 stock split on its common
Rail Company announced a 2-for-1 stock split on its common stock. Before the announcement, there were 300,000 shares of $0.50 par common stock outstanding. Determine how many shares of common stock will be outstanding after the stock split. What will be the par value of each share? What effect does the stock split have on total shareholders’ equity?
Relevant QuestionsOn January 1, 2010, Harrison Corporation started the year with a $422,000 balance in retained earnings. During 2010, the company earned net income of $130,000 and declared and paid dividends of $20,000. Also, the company ...Holly Brown Architectural Company has 5,000 shares of 8%, $70 par, cumulative preferred stock outstanding and 7,500 shares of $2.50 par value common stock outstanding. The company began operations on July 1, 2009. The cash ...Use the data from E8-34A to prepare the shareholders’ equity section of the balance sheet at year end. Net income for the year was $150,000.In E8-34A On the first day of the fiscal year, Music Productions Corporation had ...Frozen Entrée Corporation had the following stockholders’ equity section on the June 30, 2011, balance sheet:Preferred stock, $125 par, 8% cumulative ....... $1,112,500Common stock, $3 par value ............ ...Analyze the following transactions and indicate the dollar increase (+) or decrease (–) each has on the balance sheet. If there is an overall change in shareholders’ equity, also indicate whether contributed capital, ...
Post your question