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An entity has 10,000 shares issued and outstanding with a 100 par value. Statement in the book: If the shares are split up 5 to 1, the new capitalization would be 50,000 shares with a 20 par value.  1. Question: How to arrive at "50,000 shares with 20 par value" using the 5 to 1 share split up? give ur computation  2. An entity has 10,000 shares issued and outstanding with 100 par value. Statement in the book: If the shares are split down 5 to 1, the new capitalization would be 2,000 shares with a 500 par value.  Question: Question: How to arrive at "2,000 shares with 500 par value" using the 5 to 1 share split up? give ur computati

An entity has 10,000 shares issued and outstanding with a 100 par value. Statement in the book: If the shares are split up 5 to 1, the new capitalization would be 50,000 shares with a 20 par value.  1. Question: How to arrive at "50,000 shares with 20 par value" using the 5 to 1 share split up? give ur computation  2. An entity has 10,000 shares issued and outstanding with 100 par value. Statement in the book: If the shares are split down 5 to 1, the new capitalization would be 2,000 shares with a 500 par value.  Question: Question: How to arrive at "2,000 shares with 500 par value" using the 5 to 1 share split up? give ur computati

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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1. An entity has 10,000 shares issued and outstanding with a 100 par value.
Statement in the book: If the shares are split up 5 to 1, the new capitalization would be 50,000 shares with a 20 par value. 
1. Question: How to arrive at "50,000 shares with 20 par value" using the 5 to 1 share split up? give ur computation 

2. An entity has 10,000 shares issued and outstanding with 100 par value.

Statement in the book: If the shares are split down 5 to 1, the new capitalization would be 2,000 shares with a 500 par value. 
Question: Question: How to arrive at "2,000 shares with 500  par value" using the 5 to 1 share split up? give ur computation 

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