Gravely Co

question 126

Short Answer

Gravely Co. declared a 2-for-1 stock split. Before that announcement, Gravely had 20,000 shares of outstanding common stock.

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Definitions:

Journal Entry

A record in accounting that signifies a transaction and affects the balance sheet and income statement.

Inventory Write-down

A reduction in the value of inventory to reflect its current market value below its listed cost.

Net Income

The net income of a company once all costs and taxes are deducted from the total earnings.

Inventory Valuation

The method used to assign cost or value to inventory, impacting how cost of goods sold and inventory are reported.