On March 1 of the current year, Xie Company has 425,000 shares of $20 par value common stock that are issued and outstanding. Its balance sheet shows the following account balances relating to common stock. Common stock $8,500,000 Paid-in capital in excess of par value 3,425,000 On March 2, Xie Company splits its common stock 2-for-1 and reduces the par value to $10 per share. Required a. How many shares of common stock are issued and outstanding immediately after the stock split? 0 b. What is the dollar balance in its common stock account immediately after the stock split? $0 c. What is the dollar balance in its paid-in capital in excess of par value account immediately after the stock split? $0
On March 1 of the current year, Xie Company has 425,000 shares of $20 par value common stock that are issued and outstanding. Its balance sheet shows the following account balances relating to common stock. Common stock $8,500,000 Paid-in capital in excess of par value 3,425,000 On March 2, Xie Company splits its common stock 2-for-1 and reduces the par value to $10 per share. Required a. How many shares of common stock are issued and outstanding immediately after the stock split? 0 b. What is the dollar balance in its common stock account immediately after the stock split? $0 c. What is the dollar balance in its paid-in capital in excess of par value account immediately after the stock split? $0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Dog
Transcribed Image Text:Analyzing, Identifying, and Explaining the Effects of a Stock Split
On March 1 of the current year, Xie Company has 425,000 shares of $20 par value common stock that are issued and outstanding. Its balance sheet shows the following account balances
relating to common stock.
Common stock
$8,500,000
Paid-in capital in excess of par value 3,425,000
On March 2, Xie Company splits its common stock 2-for-1 and reduces the par value to $10 per share.
Required
a. How many shares of common stock are issued and outstanding immediately after the stock split?
0
b. What is the dollar balance in its common stock account immediately after the stock split?
$0
c. What is the dollar balance in its paid-in capital in excess of par value account immediately after the stock split?
$0
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education