On March 1, 20x5, Ria Corporation has 200,000 sharesof P10 par Ordinary Shares outstanding and the marketprice of the stock is P15 per share. On the same date, thecorporation declared a 1 for 2 reverse stock split.Immediately prior to the 1 for 2 reverse stock split, thefollowing accounts can be found in the stockholdersequity section of the corporation.Preferred Shares, par value P100, authorizedP 800,000shares 10,000 sharesShare Premium -Preference325,000Ordinary Shares, P10 par, 1,000,000 shares2,000,000authorizedShare Premium - Ordinary450,000Retained Earnings3,125,5321. How much is the Share premium- Ordinaryimmediately after the 1 for 2 reverse stocks split?2. How much is the legal capital immediately after the 1for 2 reverse stocks split?

A reverse stock split is the process of consolidating two or more shares into one. Under this…

On March 1, 20x5, Ria Corporation has 200,000 shares of P10 par Ordinary Shares outstanding and the market price of the stock is P15 per share. On the same date, the corporation declared a 1 for 2 reverse stock split. Immediately prior to the 1 for 2 reverse stock split, the following accounts can be found in the stockholders equity section of the corporation. Preferred Shares, par value P100, authorized shares 10,000 shares P 800,000 Share Premium -Preference 325,000 Ordinary Shares, P10 par, 1,000,000 shares authorized 2,000,000 Share Premium - Ordinary 450,000 Retained Earnings 3,125,532 1. How much is the Share premium- Ordinary immediately after the 1 for 2 reverse stocks split? 2. How much is the legal capital immediately after the 1 for 2 reverse stocks split?

On March 1, 20x5, Ria Corporation has 200,000 shares of P10 par Ordinary Shares outstanding and the market price of the stock is P15 per share. On the same date, the corporation declared a 1 for 2 reverse stock split. Immediately prior to the 1 for 2 reverse stock split, the following accounts can be found in the stockholders equity section of the corporation. Preferred Shares, par value P100, authorized shares 10,000 shares P 800,000 Share Premium -Preference 325,000 Ordinary Shares, P10 par, 1,000,000 shares authorized 2,000,000 Share Premium - Ordinary 450,000 Retained Earnings 3,125,532 1. How much is the Share premium- Ordinary immediately after the 1 for 2 reverse stocks split? 2. How much is the legal capital immediately after the 1 for 2 reverse stocks split?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 57E: Outstanding Stock Lars Corporation shows the following information in the stockholders equity...

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