On September 1, Cambridge Company has 500,000 shares of ($ 15) par value common stock that are

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On September 1, Cambridge Company has 500,000 shares of $\$ 15$ par value common stock that are issued and outstanding. The general ledger shows the following account balances relating to the common stock:

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On September 2, Cambridge splits its stock 3-for-2 and reduces the par value to $\$ 10$ per share.

a. How many shares of common stock are issued and outstanding immediately following the stock split?

b. What is the balance in the Common Stock account immediately following the stock split?

c. What is the likely reason that Cambridge Company split its stock?

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Financial Accounting For Undergraduates

ISBN: 9781618533081

4th Edition

Authors: Wallace

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Question Posted: May 18, 2024 11:07 PM

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On September 1, Cambridge Company has 500,000 shares of ($ 15) par value common stock that are

Question:

Common stock.. Paid-in capital in excess of par value. $7,500,000 $2,250,000

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Financial Accounting For Undergraduates

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