On February 1, a corporation has 40,000 shares of $1 par value common stock issued and outstanding. The corporation also has Additional Paid - in Capital of $200,000 and Retained Eamings of $200,000. On February 1, the corporation declared a 2- for - 1 stock split. After the split, what is the total par value of the common stock and the total stockholders' equity, respectively? OA. $40,000; $440,000 O B. $40,000; $240,000 OC. $80,000; $440,000 O D. $20,000; $440,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
14
On February 1, a corporation has 40,000 shares of $1 par value common stock issued and outstanding. The corporation also has Additional Paid - in Capital of $200,000 and Retained Eamings of $200,000. On February 1, the corporation
declared a 2- for -1 stock split. After the split, what is the total par value of the common stock and the total stockholders' equity, respectively?
O A. $40,000; $440,000
O B. $40,000; $240,000
O C. $80,000; $440,000
O D. $20,000; $440,000
Next
MacBook Air
esc
80
888
DII
FI
F2
F4
FS
F6
F7
F8
F9
F10
F12
@
%23
$
&
*
1
2
3
4
7
delete
Q
W
E
T
Y
U
{
tab
A
S
%3D
caps lock
H
J
K
retur
....
**
Transcribed Image Text:On February 1, a corporation has 40,000 shares of $1 par value common stock issued and outstanding. The corporation also has Additional Paid - in Capital of $200,000 and Retained Eamings of $200,000. On February 1, the corporation declared a 2- for -1 stock split. After the split, what is the total par value of the common stock and the total stockholders' equity, respectively? O A. $40,000; $440,000 O B. $40,000; $240,000 O C. $80,000; $440,000 O D. $20,000; $440,000 Next MacBook Air esc 80 888 DII FI F2 F4 FS F6 F7 F8 F9 F10 F12 @ %23 $ & * 1 2 3 4 7 delete Q W E T Y U { tab A S %3D caps lock H J K retur .... **
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education