Bacon Inc. has the following stockholders' equity section in its May 31, 2019, comparative balance sheetsHay 31 2019April 30, 2019Paid-in capitaliPreferred stock, $150 par value, Sx, cumulative, 100,000 shares authorized,82,000 shares issued and outstandingComon stock, $6 par value, 600, 000 shares authorized, 350,000 and 330,000shares issued, respectivelyAdditional paid-in capitalRetained earningsLess: Treasury conmon stock, at cost; 20,000 shares and 19,000 shares,respectivelyTotal stockholders' equity$12,300,000$12, 300,00014,820,00012,228, 0001,980, 00014,440, 00011,944,000(1,840,000)(1,824,000)$38,840,000g. Assume that instead of the stock dividend described in f, the board of directors authorized a 2-for-1 stock split on June 1 when themarket price of the common stock was $34 per share.1. What will be the par value, and how many shares of common stock will be authorized after the split?Par valueNumber of shares2. What will be the market price per share of common stock after the split?Market price3. How many shares of common stock will be in the treasury after the split?Number of shares

1) Given stock split is 2 for 1 which means that every one stock will be split into two stock.…

Bacon Inc. has the following stockholders' equity section in its May 31, 2019, comparative balance sheets Hay 31, 2019 April 30, 2019 Paid-in capital: Preferred stock, si50 par value, sx, cumulative, 100,000 shares authorized, 82,000 shares issued and outstanding Conmon stock, $6 par value, 600,000 shares authorized, 350,000 and 330,000 shares issued, respectively Additional pald-in capital Retained earnings Lesst Treasury conmon stock, at cost; 20,000 shares and 19,000 shares, respectively Total stockholders equity $12, 300,000 $12, 300,000 14,820,000 12,220,000 1,980,000 14,440,000 11,944,000 (1,824, 000) $38,840,000 (1,840,000) 9. Assume that instead of the stock dividend described in f, the board of directors authorized a 2-for-1 stock split on June 1 when the market price of the common stock was $34 per share. 1. Whet will be the par value, and how many shares of common stock will be authorized after the split? Par value Number of shares 2. What will be the market price per share of common stock after the split? Market price 3. How many shares of common stock will be in the treasury after the split? Number of shares

Bacon Inc. has the following stockholders' equity section in its May 31, 2019, comparative balance sheets Hay 31, 2019 April 30, 2019 Paid-in capital: Preferred stock, si50 par value, sx, cumulative, 100,000 shares authorized, 82,000 shares issued and outstanding Conmon stock, $6 par value, 600,000 shares authorized, 350,000 and 330,000 shares issued, respectively Additional pald-in capital Retained earnings Lesst Treasury conmon stock, at cost; 20,000 shares and 19,000 shares, respectively Total stockholders equity $12, 300,000 $12, 300,000 14,820,000 12,220,000 1,980,000 14,440,000 11,944,000 (1,824, 000) $38,840,000 (1,840,000) 9. Assume that instead of the stock dividend described in f, the board of directors authorized a 2-for-1 stock split on June 1 when the market price of the common stock was $34 per share. 1. Whet will be the par value, and how many shares of common stock will be authorized after the split? Par value Number of shares 2. What will be the market price per share of common stock after the split? Market price 3. How many shares of common stock will be in the treasury after the split? Number of shares

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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