A company had 300,000 shares of $10 par value common stock outstanding.The amount of additional paid-in capital is $1,500,000,and retained earnings is $450,000.The company issues a 2-for-1 stock split.The market price of the stock is $13.What is the balance in the common stock account after this issuance?

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A 2-for-1 stock split doubles the number of shares and halves the par value. The original shares were 300,000 at $10 par value, totaling $3,000,000 in the common stock account. After the split, there are 600,000 shares at $5 par value, still totaling $3,000,000.

A Company Had 300,000 Shares of $10 Par Value Common