The Following Information Comes from a Balance Sheet at December

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The following information comes from a balance sheet at December 31: Answer the following questions:
A)How many shares of common stock are issued?
B)How many shares of common stock are outstanding?
C)Assuming that all shares were sold at the same price, what was the original selling price per share?
D)If the company declares a 2-for-1 stock split on December 31, describe the resulting change, if any, in the balances in capital stock accounts and the par value of the common stock.

• A)How many shares of common stock are issued?
• B)How many shares of common stock are outstanding?
• C)Assuming that all shares were sold at the same price, what was the original selling price per share?
• D)If the company declares a 2-for-1 stock split on December 31, describe the resulting change, if any, in the balances in capital stock accounts and the par value of the common stock.

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Definitions:

Linear Equation

A mathematical equation where every term is a constant or the multiplication of a constant with one variable, resulting in a graph that outlines a straight line.

Solve

Refers to finding the value or values that satisfy an equation or system of equations.

Linear Equation

An algebraic equation in which each term is either a constant or the product of a constant and a single variable, and the graph forms a straight line.

Solve

Finding the value of variables that satisfy a given mathematical equation or inequality.