Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
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Chapter 18, Problem 18.20E
(1)
To determine
Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.
To prepare: The
(2)
To determine
To describe: The key factor that motivates H Corporation for declaring 2-for-1 stock split to be effected by a dividend payable in shares of common stock.
(3)
To determine
The approximate amount of stock price, if Corporation H’s stock price is $36 at the time of stock split.
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Part B
Kitacon's IPO public portion oversubscribed by 11.46 times
January 11, 2023
KUALA LUMPUR (Jan 11): The public portion of Kumpulan
Kitacon Bhd's initial public offering (IPO) was oversubscribed by
11.46 times, the company said, with applications for 124.58
million shares received for the 10 million shares available for
application by the Malaysian public.
Kitacon, which sought to raise RM51.74 million from the IPO,
said that another 8.59 million new shares to be issued to eligible
directors, employees and persons have been fully subscribed.
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selected investors. In total, the IPO's new issuance totalled 76.09 million shares at 68 sen.
KITACON
IC
Required
Based on the above news from The Edge Market, prepare the journal entries to record the above
situation assuming that the Kitacon Bhd's issues Preferences shares and the directors decided to
reject 30% of the application received.
Hansaben
Exercise 11-16A (Algo) Determining the effects of stock splits on the accounting records LO 11-7
The market value of Yeates Corporation's common stock had become excessively high. The stock was currently selling for $260 per
share. To reduce the market price of the common stock, Yeates declared a 4-for-1 stock split for the 230,000 outstanding shares of its
$10 par value common stock.
Required:
b. Determine the number of common shares outstanding and the par value after the split.
Note: Round par value answer to 2 decimal places.
Number of common shares outstanding
Par value per share after the split
Chapter 18 Solutions
Intermediate Accounting, 10 Ed
Ch. 18 - Identify and briefly describe the two primary...Ch. 18 - Prob. 18.2QCh. 18 - Prob. 18.3QCh. 18 - Prob. 18.4QCh. 18 - Prob. 18.5QCh. 18 - Prob. 18.6QCh. 18 - Prob. 18.7QCh. 18 - What is meant by a shareholders preemptive right?Ch. 18 - Terminology varies in the way companies...Ch. 18 - Most preferred shares are cumulative. Explain what...
Ch. 18 - The par value of shares historically indicated the...Ch. 18 - Prob. 18.12QCh. 18 - How do we report components of comprehensive...Ch. 18 - The balance sheet reports the balances of...Ch. 18 - At times, companies issue their shares for...Ch. 18 - Prob. 18.16QCh. 18 - The costs of legal, promotional, and accounting...Ch. 18 - When a corporation acquires its own shares, those...Ch. 18 - Discuss the conceptual basis for accounting for a...Ch. 18 - The prescribed accounting treatment for stock...Ch. 18 - Brandon Components declares a 2-for-1 stock split....Ch. 18 - What is a reverse stock split? What would be the...Ch. 18 - Suppose you own 80 shares of Facebook common stock...Ch. 18 - Prob. 18.24QCh. 18 - Comprehensive income LO181 Schaeffer Corporation...Ch. 18 - Stock issued LO184 Penne Pharmaceuticals sold 8...Ch. 18 - Prob. 18.3BECh. 18 - Prob. 18.4BECh. 18 - Prob. 18.5BECh. 18 - Retirement of shares LO185 Agee Storage issued 35...Ch. 18 - Treasury stock LO185 The Jennings Group...Ch. 18 - Prob. 18.8BECh. 18 - Prob. 18.9BECh. 18 - Property dividend LO187 Adams Moving and Storage,...Ch. 18 - Stock dividend LO188 On June 13, the board of...Ch. 18 - Prob. 18.14BECh. 18 - Stock split LO188 Refer to the situation...Ch. 18 - Prob. 18.16BECh. 18 - Prob. 18.2ECh. 18 - Earnings or OCI? LO182 Indicate by letter whether...Ch. 18 - Stock issued for cash; Wright Medical Group LO184...Ch. 18 - Issuance of shares; noncash consideration LO184...Ch. 18 - Prob. 18.6ECh. 18 - Share issue costs; issuance LO184 ICOT Industries...Ch. 18 - Prob. 18.14ECh. 18 - Prob. 18.16ECh. 18 - Prob. 18.20ECh. 18 - Prob. 18.22ECh. 18 - Prob. 18.25ECh. 18 - Various stock transactions; correction of journal...Ch. 18 - Prob. 18.1DMPCh. 18 - Prob. 18.6DMPCh. 18 - Prob. 18.8DMP
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