A corporation that had 28,000 shares of common stock outstanding declared a 4-for-1 stock split. a. What will be the number of shares outstanding after the split? shares b. If the common stock had a market price of $92 per share before the stock split, what would be an approximate market price per share after the split? per share c. Journalize the entry for the stock split. If no entry is required, type "No Entry Required" and leave the amount boxes blank. Debit Credit Account

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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**Stock Split Exercise**

A corporation that had 28,000 shares of common stock outstanding declared a 4-for-1 stock split.

**a.** What will be the number of shares outstanding after the split?  
[Answer Box] shares

**b.** If the common stock had a market price of $92 per share before the stock split, what would be an approximate market price per share after the split?  
$[Answer Box] per share

**c.** Journalize the entry for the stock split. If no entry is required, type "No Entry Required" and leave the amount boxes blank.

| Account          | Debit       | Credit      |
|------------------|-------------|-------------|
| [Dropdown Box]   | [Amount Box]| [Amount Box]|
| [Dropdown Box]   | [Amount Box]| [Amount Box]|

**Note:** This problem involves calculating the new number of shares and the adjusted market price per share after a stock split, as well as determining if a journal entry is necessary.
Transcribed Image Text:**Stock Split Exercise** A corporation that had 28,000 shares of common stock outstanding declared a 4-for-1 stock split. **a.** What will be the number of shares outstanding after the split? [Answer Box] shares **b.** If the common stock had a market price of $92 per share before the stock split, what would be an approximate market price per share after the split? $[Answer Box] per share **c.** Journalize the entry for the stock split. If no entry is required, type "No Entry Required" and leave the amount boxes blank. | Account | Debit | Credit | |------------------|-------------|-------------| | [Dropdown Box] | [Amount Box]| [Amount Box]| | [Dropdown Box] | [Amount Box]| [Amount Box]| **Note:** This problem involves calculating the new number of shares and the adjusted market price per share after a stock split, as well as determining if a journal entry is necessary.
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