Examine Halifax Metal Products Ltd.'s shareholders' equity section for October 31, 2017, in Exercise 14-4. Suppose Halifax

Question:

Examine Halifax Metal Products Ltd.'s shareholders' equity section for October 31, 2017, in Exercise 14-4. Suppose Halifax Metal Products Ltd. consolidated its common shares 1 for 2 (a reverse stock split) to increase the market price of its shares. The company's shares were trading at $6.00 immediately before the reverse split. Make the memorandum entry to record the share consolidation, and prepare the shareholders' equity section of Halifax Metal Products Ltd.'s after the share consolidation. What would you expect the market price to be, approximately, after the reverse split?
In Exercise 14-4
Common shares, unlimited shares authorized, 60,000 shares issued
and outstanding .................................................................. $150,000
Retained earnings ................................................................. 450,000
Total shareholders' equity ........................................................ $600,000
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...