Mario's has 18,000 shares of stock outstanding with a par value of $1.00 per share and a market price of $33 a share. The balance sheet shows $18,000 in the common stock account, $285,000 in
The paid in surplus account, and $162,000 in the retained earnings account. The ﬁrm just
Announced a 5-for-3 stock split. What will the paid in surplus account value be after the split?

Question

Quizplus · Accepted Answer

A stock split does not affect the paid-in surplus account. The paid-in surplus remains the same at $285,000 after the stock split.

Mario's Has 18,000 Shares of Stock Outstanding with a Par