On April 1, Blue Devil Inc. has 300,000 shares of $20 par value common stock that are issued and outstanding. The general ledger shows the following account balances relating to the common stock: Common stock $6,000,000 Paid-in capital in excess of par value 1,350,000 On April 20, Blue Devil splits its stock 5-for-2 and reduces the par value to $8 per share. a. How many shares of common stock are issued and outstanding immediately following the stock split? b. What is the balance in the Common Stock account immediately following the stock split?
On April 1, Blue Devil Inc. has 300,000 shares of $20 par value common stock that are issued and outstanding. The general ledger shows the following account balances relating to the common stock: Common stock $6,000,000 Paid-in capital in excess of par value 1,350,000 On April 20, Blue Devil splits its stock 5-for-2 and reduces the par value to $8 per share. a. How many shares of common stock are issued and outstanding immediately following the stock split? b. What is the balance in the Common Stock account immediately following the stock split?
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 14EB: Nutritious Pet Food Companys board of directors declares a 2-for-1 stock split on June 30 when the...
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On April 1, Blue Devil Inc. has 300,000 shares of $20 par value common stock that are issued and outstanding. The general ledger shows the following account balances relating to the common stock:
Common stock $6,000,000
Paid-in capital in excess of par value 1,350,000
On April 20, Blue Devil splits its stock 5-for-2 and reduces the par value to $8 per share.
a. How many shares of common stock are issued and outstanding immediately following the stock split?
b. What is the balance in the Common Stock account immediately following the stock split?
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