Squash Delight Incorporated has the following balance sheet: Assets Cash Accounts receivable Fixed assets Total assets Accounts payable Notes payable Liabilities Common stock (100,000 shares @ $2 par) Capital in excess of par Retained earnings Total liabilities & owners' equity The firm's stock sells for $10 a share. $ 90,000 339,000 732,000 $ 1,161,000 $ 302,000 52,000 200,000 100,000 507,000 $ 1,161,000 a. Show the effect on the capital accounts of a two-for-one stock split. Note: Do not round intermediate calculations and round your answers to the nearest whole dollar. Effect of Stock Split Common stock Capital excess of par Retained earnings Total equity $ 0
Squash Delight Incorporated has the following balance sheet: Assets Cash Accounts receivable Fixed assets Total assets Accounts payable Notes payable Liabilities Common stock (100,000 shares @ $2 par) Capital in excess of par Retained earnings Total liabilities & owners' equity The firm's stock sells for $10 a share. $ 90,000 339,000 732,000 $ 1,161,000 $ 302,000 52,000 200,000 100,000 507,000 $ 1,161,000 a. Show the effect on the capital accounts of a two-for-one stock split. Note: Do not round intermediate calculations and round your answers to the nearest whole dollar. Effect of Stock Split Common stock Capital excess of par Retained earnings Total equity $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![22
Squash Delight Incorporated has the following balance sheet:
Cash
Accounts receivable
Assets
Fixed assets
Total assets
Accounts payable
Notes payable
Liabilities
Common stock (100,000 shares @ $2 par)
Capital in excess of par
Retained earnings
Total liabilities & owners' equity
The firm's stock sells for $10 a share.
$ 90,000
339,000
732,000
$ 1,161,000
$ 302,000
52,000
200,000
100,000
507,000
$ 1,161,000
a. Show the effect on the capital accounts of a two-for-one stock split.
Note: Do not round intermediate calculations and round your answers to the nearest whole dollar.
Common stock
Capital excess of par
Retained earnings
Total equity
Effect of Stock
Split
$
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff02de36d-e18c-44c1-986b-3e2b139c2c23%2F33b032b7-4075-424f-a1dc-cf6b59343191%2Fcq5ii5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:22
Squash Delight Incorporated has the following balance sheet:
Cash
Accounts receivable
Assets
Fixed assets
Total assets
Accounts payable
Notes payable
Liabilities
Common stock (100,000 shares @ $2 par)
Capital in excess of par
Retained earnings
Total liabilities & owners' equity
The firm's stock sells for $10 a share.
$ 90,000
339,000
732,000
$ 1,161,000
$ 302,000
52,000
200,000
100,000
507,000
$ 1,161,000
a. Show the effect on the capital accounts of a two-for-one stock split.
Note: Do not round intermediate calculations and round your answers to the nearest whole dollar.
Common stock
Capital excess of par
Retained earnings
Total equity
Effect of Stock
Split
$
0
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