On July 31,2018,Baldwin,Inc Assume That Baldwin Splits Its Common Stock 3-For-1

question 119

Essay

On July 31,2018,Baldwin,Inc.reported the following information in the equity section of their balance sheet:
$$\begin{array} { | l | r | } \hline \text { Stockholders' Equity: } & \\\hline \begin{array} { l } \text { Common Stock, } \$ 1.00 \text { par, } 500,000 \text { shares authorized,20,000 shares issued } \\\text { and outstanding }\end{array} & \$ 20,000 \\\hline \text { Paid-In Capital in Excess of Par-Common } & 3,180,000 \\\hline \text { Retained Earnings } & 3,200,000\\\hline\text { Total Stockholder's Equity }&\$ 4,400,000 \\\hline \end{array}$$ Assume that Baldwin splits its common stock 3-for-1.Prepare an equity section of the balance sheet that shows the effects of the stock split.(Please round all numbers to the nearest cent.)

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Definitions:

Due Diligence

A rigorous process that involves evaluating an investment opportunity prior to the contract being signed.

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A situation, asset, or project that promises future financial returns, involving potential for profit as well as risk of loss.

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An agreement or an arrangement, often in a business context, that specifies terms between parties for transactions, collaborations, or partnerships.

Entrepreneurs

Individuals who organize and operate businesses, taking on greater than normal financial risks in order to do so.