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Forward Stock Split On March 1 of the current year, Center Corporation has 500,000 shares of $10 par value common stock that are issued and outstanding. The general ledger shows the following account balances relating to the common stock: Common stock $5.000.000 Paid-in capital in excess of par value 3,500,000 On March 2, Center Corporation splits its stock 2-for-1 and reduces the par value to $5 per share. a. How many shares of common stock are issued and outstanding immediately following the stock split? shares b. What is the balance in the Common Stock account immediately following the stock split? 24 c. What is the balance in the Paid-in Capital in Excess of Par Value account immediately following the stock split?

Forward Stock Split On March 1 of the current year, Center Corporation has 500,000 shares of $10 par value common stock that are issued and outstanding. The general ledger shows the following account balances relating to the common stock: Common stock $5.000.000 Paid-in capital in excess of par value 3,500,000 On March 2, Center Corporation splits its stock 2-for-1 and reduces the par value to $5 per share. a. How many shares of common stock are issued and outstanding immediately following the stock split? shares b. What is the balance in the Common Stock account immediately following the stock split? 24 c. What is the balance in the Paid-in Capital in Excess of Par Value account immediately following the stock split?

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 4MC: Effective May 1, the shareholders of Baltimore Corporation approved a 2-for-1 split of the companys...
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Forward Stock Split On March 1 of the current year, Center Corporation has 500,000 shares of $10 par value common stock that are issued and outstanding. The general ledger shows the following account balances relating to the common stock: Common stock $5,000,000 Paid-in capital in excess of par value 3,500,000 On March 2, Center Corporation splits its stock 2-for-1 and reduces the par value to $5 per share. a. How many shares of common stock are issued and outstanding immediately following the stock split? shares b. What is the balance in the Common Stock account immediately following the stock split? c. What is the balance in the Paid-in Capital in Excess of Par Value account immediately following the stock split?
Transcribed Image Text:Forward Stock Split On March 1 of the current year, Center Corporation has 500,000 shares of $10 par value common stock that are issued and outstanding. The general ledger shows the following account balances relating to the common stock: Common stock $5,000,000 Paid-in capital in excess of par value 3,500,000 On March 2, Center Corporation splits its stock 2-for-1 and reduces the par value to $5 per share. a. How many shares of common stock are issued and outstanding immediately following the stock split? shares b. What is the balance in the Common Stock account immediately following the stock split? c. What is the balance in the Paid-in Capital in Excess of Par Value account immediately following the stock split?
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