many shares of common stock are issued and outstanding immediately following the stock split? b. What is the balance in the Common Stock account i

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Forward Stock Split

On September 1, Cambridge Company has 500,000 shares of $15 par value common stock that are issued and outstanding. The general ledger shows the following account balances relating to the common stock:

 

Common stock $7,500,000
Paid-in capital in excess of par value 2,250,000

 

On September 2, Cambridge splits its stock 3-for-2 and reduces the par value to $10 per share.

a. How many shares of common stock are issued and outstanding immediately following the stock split?


b. What is the balance in the Common Stock account immediately following the stock split?

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