D. The shares issued and outstanding will all quadruple while the par value will be reduced to $ 0.25 per share.
A stock split does not impact the book value of total stockholders' equity.
Book value of common shares issued and outstanding before the stock split = 2,500,000 x $ 1 = $ 2,500,000.
Book value of common shares issued and outstanding after the stock split = 2,500,000 x 4 x $ 0.25 = $ 2,500,000.
Quiz 2 Sneak Peek Question A company has 20 million common shares authorized and 2.5 million...
Company Z has 2.5 million shares of common stock authorized with a par value of $1 and a market price of $60. There are 1.25 million outstanding shares and 0.3125 million shares held in treasury stock. Required: a. Prepare the journal entry if the company declares and distributes a 10% stock dividend. b. Show the effect of the 10% stock dividend on assets, liabilities, and stockholders' equity. c. Prepare the journal entry if the company declares and distributes a 100%...
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Willis & Company has 20 million shares of $1 par value common stock outstanding. The company believes that its current market price of $100 per share is too high and decides to execute a 4-for-1 forward stock split to lower the price. How many shares will be outstanding following the stock split? What will be the new par value per share?
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4. ABC Company has 180,000 shares of common stock authorized and 50,000 shares issued and outstanding. The common stock has a $1.50 Par value and a market value of $27 per share on October 10, 2016. On October 10, 2016, ABC declares and pays a 22% stock dividend to shareholders. Record all necessary journal entries. a. Assuming this is considered a SMALL Stock Dividend, record all necessary journal entries Credit Debit Accounts Date b. Assuming this is considered a LARGE...
Netpass Company has 300,000 shares of common stock authorized, 270,000 shares issued, and 100,000 shares of treasury stock. The company's board of directors declares a dividend of $1 per share of common stock. What is the total amount of the dividend that will be paid? Dividend Amount to be Paid $ 77.000
Cal Cookie Company (CCC) has 100 million shares of $1 par common stock authorized. The transactions below caused changes in CCC's outstanding shares January 4, 2018: Repurchased and retired 2.38 million shares at $7.78 per share. Dune 25, 2e1s: Repurchased and retired 3.3 illion shares at $3.30 per share. Prior to the transactions, CCC's shareholders' equity included the following Common stock, 79.78 million shares at $3 par Paid-in capital excess of par Retained earnings 79,700,800 263,010,00 117,000,000 Required: Prepare the...