Stock Split and Equity Accounts

Related BrainMass Solutions

• Outstanding shares after a one-for-six reverse stock split

  owers equity 221,000 How many shares will be outstanding if the firm declares a one-for-six reverse stock split?

• The company with the common equity accts shown here has decl

  The equity accounts are unchanged except the new par value of the stock is $0.2 per share.

• Wicker Home Health Home Health Care, Inc. 20% stock dividend

  Show the effect on the equity accounts and per-share data of a 20% stock dividend. B. Show the effect on the equity accounts and per-share data of a 5-for-4 stock split. C.

• P14-1A Carolinas Company Journal Entries

  Journalize the transaction and the closing entry for net income. Enter the beginning balances, and post the entries to the stockholders' equity accounts.

• Stock Holder Equity after the Share Split

  • But there is no transfer of balances between the equity accounts(no transfer from reserves to share capital) The solution provides step by step method for the calculation of stock holder equity after the splitting of shares.

• Preparing journal entries

  (a) Prepare the journal entries on the appropriate dates to record the stock dividend and the stock split. Debit & Credit Accounts Debit Credit E.g. Dr. Cash 200 Cr.

• Transaction Effects on Financial Ratios

  Split the common stock 2 for 1. Book value per share of common stock NEGATIVE - The denominator increases b. Collected accounts receivable.

• Balances of additional paid in capital and retained earnings

  Dorr stockholders' equity accounts immediately before issuance of the stock split shares were: Common stock ($20 par value); authorized Shares, shares outstanding 50,000 1,000,000 Additional paid-in capital $150,000 Retained earnings

• Pazini Co.

  So, $600,000 would be transferred from retained earnings to the appropriate contributed capital accounts. The capital stock account is credited for the par value of the shares issued and the remainder is added to additional paid-in capital.