At December 31, 2019, North Corporation had 40,000 shares outstanding of $30 par value common stock. The shares were originally issued for $84 per share. On January 1, 2020, Western split its common stock 3 for 1 with a corresponding reduction in the stock's par value. The market price of the stock just before the split was $150 per share.
After the split, the balance in the common stock account is:

Question

Quizplus · Accepted Answer

120,000* shares x $10** par value = $1,200,000
*40,000 shares x 3 = 120,000 shares
**$30 / 3 = $10 par value per share

At December 31, 2019, North Corporation Had 40,000 Shares Outstanding