Core Corporation Had 400,000 Shares of $2 Par Value Common

question 22

Essay

Core Corporation had 400,000 shares of $2 par value common stock authorized.On December 31,2018,there were 200,000 shares issued and outstanding.The market value of its common stock on that date was $100 per share.On January 5,2019,the board of directors declared a five-to-four stock split (i.e. ,a 25% increase in the number of shares).
Required:
Part a.Briefly explain the how a stock spilt affects the stockholders' equity accounts and the total resources of the company.
Part b.Assume that you have 100 shares of Core Corporation common stock.Determine how many shares will you have after the stock split.
Part c.Determine how the stock split will impact the number of authorized shares,the number of issued and outstanding shares,and the par value per share.
Part d.Determine the total par value of the company's issued and outstanding shares (that is,the balance of the Common Stock account)before the stock split and after the stock split.

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Definitions:

AV Node

The atrioventricular node, a part of the electrical conduction system of the heart that coordinates the top of the heart. It acts as an electrical relay station, slowing the electrical current sent by the sinoatrial node before the signal is permitted to pass down through to the ventricles.

Pacemaker

An electronic medical device implanted in the chest to regulate the heartbeat, used in conditions where the heart's natural rhythm is too slow.

Atria

The atria are the two upper chambers of the heart, responsible for receiving blood from the veins and pumping it into the ventricles, which then circulate it to the lungs and the rest of the body.

Ventricles

Hollow chambers within the brain that produce cerebrospinal fluid, or within the heart that pump blood throughout the body.