Twin Towns, Inc , was authorized to issue 200,000 shares of common stock and originally issued 100,000 shares of $10 par value stock at $18 per share Subsequently, 25,000 shares were repurchased at $20, of which 10,000 were subsequently resold at $23 Assume the companys retained earnings balance is...

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Twin Towns, Inc., was authorized to issue 200,000 shares of common stock and originally issued 100,000 shares

Question:

Twin Towns, Inc., was authorized to issue 200,000 shares of and originally issued
100,000 shares of $10 stock at $18 per share. Subsequently, 25,000 shares were repurchased at $20, of which 10,000 were subsequently resold at $23.
Assume the company’s retained earnings balance is $120,000.
a. Prepare the stockholders’ equity section of Twin Towns’s balance sheet, including all appropriate disclosures.
b. Briefly explain how the declaration and of a 2-for-1 stock split subsequent to the above transactions would affect the stockholders’ equity section you have prepared.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...