Forward Stock Split On March 1 of the current year, Sentry Corporation has 500,0

Question

Forward Stock Split On March 1 of the current year, Sentry Corporation has 500,000 shares of $20 par value common stock that are issued and outstanding. The general ledger shows the following account balances relating to the common stock: Common stock $10,000,000 Paid-in capital in excess of par value 3,400,000 On March 2, Sentry Corporation splits its stock 2-for-1 and reduces the par value to $10 per share. a. How many shares of common stock are issued and outstanding immediately following the stock split? O shares shares b. What is the balance in the Common Stock account immediately following the stock split? $ 0 c. What is the balance in the Paid-in Capital in Excess of Par Value account immediately following the stock split? $ 0 Check

Explanation / Answer

a Shares issued and outstanding = 500000*2=1000000 b Balance in Common Stock = $10000000 c Balance in paid in capital in excess of par value=$3400000

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