Common Stock, Par Value $2.00; Authorized 100,000 shs, Issued and Outstanding 50,000 shares = 100,000 The Board of Directors believes that the current Market Price of $50.00 per share is too high and is detracting from investors buying the shares. The Board Declared a 2:1 Stock Split. REQUIRED: 1) What is the effect of the stock split on the Common Shares?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 10C: Treasury Stock For numerous reasons, a corporation may reacquire shares of its own capital stock....
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Question 1
The Paid in Capital Section of the Stockholders Equity section is as follows:
= = 100,000
Common Stock, Par Value $2.00; Authorized 100,000 shs, Issued and Outstanding 50,000 shares
The Board of Directors believes that the current Market Price of $50.00 per share is too high and is detracting from investors buying the shares.
The Board Declared a 2:1 Stock Split.
REQUIRED:
1) What is the effect of the stock split on the Common Shares ?
List all items effected by the stock split.
Par Value;
- Issued and Outstanding Shares
Market Price of the Shares
- Common Stock balance after the split on the Paid in Capital section ?
Transcribed Image Text:Question 1 The Paid in Capital Section of the Stockholders Equity section is as follows: = = 100,000 Common Stock, Par Value $2.00; Authorized 100,000 shs, Issued and Outstanding 50,000 shares The Board of Directors believes that the current Market Price of $50.00 per share is too high and is detracting from investors buying the shares. The Board Declared a 2:1 Stock Split. REQUIRED: 1) What is the effect of the stock split on the Common Shares ? List all items effected by the stock split. Par Value; - Issued and Outstanding Shares Market Price of the Shares - Common Stock balance after the split on the Paid in Capital section ?
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