At December 31,2017,North Company and South Company Have Identical Amounts

question 49

Essay

At December 31,2017,North Company and South Company have identical amounts of common stock and retained earnings as follows:
Common stock,$10 par,50,000 shares authorized,9,000 issued,9,000 outstanding
Retained earnings,$500,000
At December 31,2017,North Company declares and issues a 100% stock dividend,while South Company declares and issues a 2-for-1 stock split.
Required
Determine for each company the following amounts as of January 1,2018:
_______ Number of shares of common stock outstanding
_______ Par value per share of the common stock
_______ Total amount reported in Common Stock account
_______ Retained earnings

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Definitions:

Contribution Margin Ratio

A metric used to assess a product's profitability, calculated by subtracting variable costs from sales revenue and dividing by sales revenue.

Break-even Point

The point at which total costs equal total revenue, meaning that a business is neither making a profit nor incurring a loss.

Net Loss

The amount by which expenses exceed revenues over a specific period, indicating a negative financial performance.

Break-even Point

The financial stage at which total revenues equal total expenses, indicating that a business is neither making a profit nor incurring a loss.