A corporation, which had 18,000 shares of common stock outstanding, declared a 3-for-1 stock split.
(a)What will be the number of shares outstanding after the split?
(b)If the common stock had a market price of $240 per share before the stock split, what would be an approximate market price per share after the split?
(c)Journalize the entry to record the stock split.

Question

Quizplus · Accepted Answer

The Answer of A corporation, which had 18,000 shares of common stock outstanding, declared a 3-for-1 stock split.
(a)What will be the number of shares outstanding after the split?
(b)If the common stock had a market price of $240 per share before the stock split, what would be an approximate market price per share after the split?
(c)Journalize the entry to record the stock split.

A Corporation, Which Had 18,000 Shares of Common Stock Outstanding