The Denver Corporation is authorized to issue 3,000 shares of 8%, %50 par-value

Question

The Denver Corporation is authorized to issue 3,000 shares of 8%, %50 par-value preferred stock and 10,000 share of no-par-value common stock with a stated value of $20 per share. On December 31,2013, 1,000 shares of preferred stock and 4,000 shares of common stock are issued and outstanding. Mar.1 declared a 2-for1 stock split of common stock. Each shareholder is to receive one new share of each share held. The stated value of the stock is reduced to $10 per share. Date of record is March 15. Date of Issue is April 1. Record the stock splits?

Explanation / Answer

No entry is required for stock splits

only the common stock issue will double that it it will be 8000 shares with the

stated value of $10 per share

No entry is required for stock splits

only the common stock issue will double that it it will be 8000 shares with the

stated value of $10 per share

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