1. ((a) Progressive Services, Inc. has just declared a 7 for 3 stock split. The company's pre-splitcommon stockholders' equity was as follows:Common stock($1.25 par, 2,000,000 shares)Contributed capital in excess of parRetained earningsTotal common stockholders' equity$ 2,500,000$ 17,500,000182,100,000$202,100,000If the pre-split price of common stock was $40, what will be the amount of retained earningsafter the split? (

Existing No. of Shares= 2000,000Stock split ratio= 7 for 3Revised No. of Common Stock=…

Answered: 1. ((a) Progressive Services, Inc. has…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Pettygrove Company had 1,500,000 shares of $10 par value common stock outstanding. The amount of additional paid-in capital is $7,500,000, and Retained Earnings is $2,250,000. The company issues a 2-for-1 stock split. The market price of the stock is $13. What is the balance in the Common Stock account after this issuance? Multiple Choice $30,000,000 $34,500,000 $15,000,000 $22,500,000
Taha Company announces a 4:1 stock split. Prior to the stock split, Taha had 1,000,000 shares of common stock outstanding and the par value was $0.20 per share. After the stock split, Taha would have: 4,000,000 outstanding shares with a par value of $0.05 per share. 250,000 outstanding shares with a par value of $0.05 per share. 250,000 outstanding shares with a par value of $0.80 per share. 4,000,000 outstanding shares with a par value of $0.80 per share.
p/ 102. Down River Express has 5,000 shares of stock outstanding with a par value of $1.00 per share. The current market value of the firm is $390,000. The balance sheet shows a paid in surplus account value of $122,000 and retained earnings of $216,000. The company just announced a 2-for-1 stock split. What will the paid in surplus account balance be after the split?  A. $61,000 B. $112,000 C. $122,000 D. $183,000 E. $244,000
The owners’ equity accounts for Vulcano International are shown here: Common stock ($.50 par value) $ 20,000 Capital surplus 210,000 Retained earnings 587,300 Total owners’ equity $ 817,300 a-1. If the company declares a 4-for-1 stock split, how many shares are outstanding now? (Do not round intermediate calculations.) a-2. What is the new par value per share? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b-1. If the company declares a 1-for-5 reverse stock split, how many shares are outstanding now? (Do not round intermediate calculations.) b-2. What is the new par value per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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