A Corporation, Which Had 18,000 Shares of Common Stock Outstanding

question 169

Essay

A corporation, which had 18,000 shares of common stock outstanding, declared a 3-for-1 stock split.
(a)What will be the number of shares outstanding after the split?
(b)If the common stock had a market price of $240 per share before the stock split, what would be an approximate market price per share after the split?
(c)Journalize the entry to record the stock split.

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Definitions:

Radius

One of the two major bones in the forearm, located on the lateral side (thumb side) of the forearm.

Distal Location

Refers to parts of the body or structures located farthest from the point of attachment or reference.

Humerus

The long bone in the upper arm that runs from the shoulder to the elbow.

False Ribs

The lower ribs (usually ribs 8-10) that are not directly attached to the sternum but are connected to the true ribs above them via cartilage.