Gordon Company reported the following equity section on its current balance sheet.The ordinary share is currently selling for $12.50 per share.
$$\begin{array} { | l | l | }
\hline \text { Prdinary share at } \$ 5 \text { per share, } 154,000 \text { shares issued } & \$ 770,000 \
\hline \text { Paid-up capital } & 137,000 \
\hline \text { Retained earnings } & 290,000 \
\hline \text { Total shareholders' equity } & \$ 1,197,000 \
\hline
\end{array}$$
After a 2-for-1 stock split,what would be the number of issued shares?

Question

Gordon Company reported the following equity section on its current balance sheet.The ordinary share is currently selling for $12.50 per share.
$$\begin{array} { | l | l | } 
\hline \text { Prdinary share at } \$ 5 \text { per share, } 154,000 \text { shares issued } & \$ 770,000 \
\hline \text { Paid-up capital } & 137,000 \
\hline \text { Retained earnings } & 290,000 \
\hline \text { Total shareholders' equity } & \$ 1,197,000 \
\hline
\end{array}$$
After a 2-for-1 stock split,what would be the number of issued shares?

Quizplus · Accepted Answer

A 2-for-1 stock split doubles the number of issued shares. Therefore, 154,000 shares would become 308,000 shares.

Gordon Company Reported the Following Equity Section on Its Current