On January 15, 2020, the board of directors of Miz Corporation voted to consolidate its outstanding common shares on the basis of one post-consolidation common share for every 20 pre-consolidation common shares (that is, a one-for-twenty reverse stock split). Miz Corporation common shares had a market price on January 15, 2020, of $0.50 per share. The shareholders' equity section of the statement of financial position of Miz Corporation at December 31, 2019, is given below: Shareholders' equity: Common shares, unlimited authorized, 10,850,000 shares issued and outstanding $54,250,000 Retained earnings (deficit) (5,020,000) Total shareholders' equity $49,230,000

On January 15, 2020, the board of directors of Miz Corporation voted to consolidate its outstanding common shares on the basis of one post-consolidation common share for every 20 pre-consolidation common shares (that is, a one-for-twenty reverse stock split). Miz Corporation common shares had a market price on January 15, 2020, of $0.50 per share. The shareholders' equity section of the statement of financial position of Miz Corporation at December 31, 2019, is given below: Shareholders' equity: Common shares, unlimited authorized, 10,850,000 shares issued and outstanding $54,250,000 Retained earnings (deficit) (5,020,000) Total shareholders' equity $49,230,000

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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