On July 1, 2021, TJH Corporation has 200,000 shares of P10 par common stock outstanding and the market price of the stock is P12 per share. On the same date, ABC declared a 1-for-2 reverse stock split. The par of the stock was increased from P10 to P20 and one new P20 par share was issued for each two P10 par shares outstanding. Immediately before the 1-for-2 reverse stock split, ABC’s additional paid-in capital was P450,000. What should be the balance in TJH’s additional paid-in capital account immediately after the reverse stock split is
On July 1, 2021, TJH Corporation has 200,000 shares of P10 par common stock outstanding and the market price of the stock is P12 per share. On the same date, ABC declared a 1-for-2 reverse stock split. The par of the stock was increased from P10 to P20 and one new P20 par share was issued for each two P10 par shares outstanding. Immediately before the 1-for-2 reverse stock split, ABC’s additional paid-in capital was P450,000. What should be the balance in TJH’s additional paid-in capital account immediately after the reverse stock split is
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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On July 1, 2021, TJH Corporation has 200,000 shares of P10 par common stock outstanding and the market price of the stock is P12 per share. On the same date, ABC declared a 1-for-2 reverse stock split. The par of the stock was increased from P10 to P20 and one new P20 par share was issued for each two P10 par shares outstanding. Immediately before the 1-for-2 reverse stock split, ABC’s additional paid-in capital was P450,000.
What should be the balance in TJH’s additional paid-in capital account immediately after the reverse stock split is effected?
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