8th Edition

ISBN: 9780078025839

Author: J. David Spiceland

Publisher: McGraw-Hill Education

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Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-deter…

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Chapter 18, Problem 18.15BE

Stock split

• LO18–8

Refer to the situation described in BE 18–13, but assume a 2-for-1 stock split instead of the 5% stock dividend. Prepare the journal entry to record the stock split if it is to be effected in the form of a 100% stock dividend. What is the par per share after the split?

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Chapter 18, Problem 18.14BE

Chapter 18, Problem 18.16BE

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Chapter 18 Solutions

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Stock split • LO18–8 Refer to the situation described in BE 18–13, but assume a 2-for-1 stock split instead of the 5% stock dividend. Prepare the journal entry to record the stock split if it is to be effected in the form of a 100% stock dividend. What is the par per share after the split?

Solution Summary: The author explains stock splits are a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, but keeping the corporation's total market value constant.

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Chapter 18 Solutions