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 journal entry to record the stock split.

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Answer 1

Question

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 journal entry to record the stock split.

(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. Kitacon is also issuing 57.5 million new shares by way of private placement to institutional and 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.

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

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 $270 per share. To reduce the market price of the common stock, Yeates declared a 3-for-1 stock split for the 310,000 outstanding shares of its $12 par value common stock. Required b. Determine the number of common shares outstanding and the par value after the split. (Round par value answer to 2 decimal places.) Number of common shares outstanding Par value per share after the split

Answer 2

Question

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 journal entry to record the stock split.

(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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Answer 3

Question

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 journal entry to record the stock split.

(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.

Expert Solution & Answer

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Answer 4

Question

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 journal entry to record the stock split.

(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.

Expert Solution & Answer

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Answer 5

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 journal entry to record the stock split.

(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.

Answer 6

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 journal entry to record the stock split.

Answer 7

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 journal entry to record the stock split.

Answer 8

(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.

Answer 9

(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.

Answer 10

(3)

To determine

The approximate amount of stock price, if Corporation H’s stock price is $36 at the time of stock split.

Answer 11

(3)

To determine

The approximate amount of stock price, if Corporation H’s stock price is $36 at the time of stock split.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 18 - Identify and briefly describe the two primary...Ch. 18 - Prob. 18.2Q Ch. 18 - Prob. 18.3Q Ch. 18 - Prob. 18.4Q Ch. 18 - Prob. 18.5Q Ch. 18 - Prob. 18.6Q Ch. 18 - Prob. 18.7Q Ch. 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...

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 journal entry to record the stock split.

Solution Summary: The author explains the key factor that motivates H Corporation to declare 2-for-1 stock split in the form of 100% common stock dividend.

Concept explainers

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 journal entry to record the stock split.

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.

The approximate amount of stock price, if Corporation H’s stock price is $36 at the time of stock split.

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Chapter 18 Solutions