At December 31, 2015, North Company and South Company have identical amounts of common stock and retained earnings as follows:
Common Stock, $10 par, 50,000 shares authorized, 9,000 issued, 9,000 outstanding
Retained Earnings, $500,000
At December 31, 2015, North Company declares and issues a 100% stock dividend, while South Company declares and issues a 2-for-1 stock split.
REQUIRED:
Determine for each company the following amounts as of January 1, 2016:
Number of shares of common stock outstanding
Par value per share of the common stock
Total amount reported in Common Stock account
Retained earnings
Correct Answer:
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