The following are the condensed balance sheet of GM and SR on January 01, 2018: GM P 10,250,000 P 2,775.000 P 3,100,000 P1,250,000 P 3,125,000 SR P 3,057,500 P 800,000 P 1,295,000 P 100,000 P 862,500 Total Assets |Liabilities Ordinary Shares Share premium Retained earnings SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing 198,500 shares to GM. Paying cash in the amount of P 72,000 and by issuing 54,350 shares to SR. The par value of these shares is P35 per share and market value of P40 per share as of January 01, 2018. SD Corp also incurred the following unpaid expenses: GM P 93,750 P 66,250 P 343,750 P 125,000 SR P 101,250 P 35,000 P 362.500 P 93,750 Indirect cost Finder's fee Accounting and legal fees for SEC registration Printing cost of stock certificates SD's retained eamings has a balance of P 10,750,000 on January 01, 2018 immediately before the acquisition.

The following are the condensed balance sheet of GM and SR on January 01, 2018: GM P 10,250,000 P 2,775.000 P 3,100,000 P1,250,000 P 3,125,000 SR P 3,057,500 P 800,000 P 1,295,000 P 100,000 P 862,500 Total Assets |Liabilities Ordinary Shares Share premium Retained earnings SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing 198,500 shares to GM. Paying cash in the amount of P 72,000 and by issuing 54,350 shares to SR. The par value of these shares is P35 per share and market value of P40 per share as of January 01, 2018. SD Corp also incurred the following unpaid expenses: GM P 93,750 P 66,250 P 343,750 P 125,000 SR P 101,250 P 35,000 P 362.500 P 93,750 Indirect cost Finder's fee Accounting and legal fees for SEC registration Printing cost of stock certificates SD's retained eamings has a balance of P 10,750,000 on January 01, 2018 immediately before the acquisition.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 13Q: How does a stock split affect the balance sheet of a corporation?

See similar textbooks

Similar questions

How does a stock split affect the balance sheet of a corporation?
20. what is the net increase or (decrease) in the stockholders’ equity of SD Corp. after the merger?
1. As a result of the merger, what is the goodwill? 2. What is the Retained Earnings after the merger? 3. What is the net increase or (decrease) in the stockholders' equity of SD Corp. after the merger?
How would a share split affect the amount of total share capital, total shareholder's equity and retained earnings, respectively? a. No effect ;No effect ;No effect b. Increase;Increase;No effect c. No effect;No effect;Increase d. Decrease;Decrease;Decrease
Based on the picture, how much is the net increase in the shareholder's equity of David Guetta Company as a result of business combination?
What effect does the stock split have on Nike’s assets? Its liabilities? Its shareholders’ equity?
How would a share split affect the amount of total share capital, total shareholder's equity and retained earnings, respectively No effect ;No effect ;No effect Increase;Increase;No effect No effect;No effect;Increase Decrease;Decrease;Decrease
Which of the following affects the total Shareholders’ Equity? a. Declaration of a scrip dividend b. Declaration of share split c. Appropriation of retained earnings d. Retirement of treasury shares
What effect will the acquisition of treasury stock have on stockholders' equity and earnings per share, respectively? a. Decrease and no effect b. Increase and no effect c. Decrease and increase d. Increase and decrease
Make an analysis of the Consolidated Statements of operations. Are the sales increasing or decreasing? Is the net income increasing or decreasing? Are the basic Earnings Per Share increasing or decreasing? (Also connect with the Consolidated Statements of Shareholders’ Equity). Consider the reasonableness of your answer.
What effect will the acquisition of treasury stock have on stockholders' equity and earnings per share, respectively? Decrease and no effect Increase and no effect Decrease and increase Increase and decrease
What is the difference between a stock split and a stock split effected in the form of a stock dividend? Finally, what is a reverse stock split, and why would a company have one?