On July 1, 2021, TJH Corporation has 200,000 shares of P10 par common stock outstanding and the market price of the stock is P12 per share. On the same date, ABC declared a 1-for-2 reverse stock split. The par of the stock was increased from P10 to P20 and one new P20 par share was issued for each two P10 par shares outstanding. Immediately before the 1-for-2 reverse stock split, ABC’s additional paid-in capital was P450,000. What should be the balance in TJH’s additional paid-in capital account immediately after the reverse stock split is
On July 1, 2021, TJH Corporation has 200,000 shares of P10 par common stock outstanding and the market price of the stock is P12 per share. On the same date, ABC declared a 1-for-2 reverse stock split. The par of the stock was increased from P10 to P20 and one new P20 par share was issued for each two P10 par shares outstanding. Immediately before the 1-for-2 reverse stock split, ABC’s additional paid-in capital was P450,000. What should be the balance in TJH’s additional paid-in capital account immediately after the reverse stock split is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On July 1, 2021, TJH Corporation has 200,000 shares of P10 par common stock outstanding and the market price of the stock is P12 per share. On the same date, ABC declared a 1-for-2 reverse stock split. The par of the stock was increased from P10 to P20 and one new P20 par share was issued for each two P10 par shares outstanding. Immediately before the 1-for-2 reverse stock split, ABC’s additional paid-in capital was P450,000.
What should be the balance in TJH’s additional paid-in capital account immediately after the reverse stock split is effected?
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