At December 31,2017,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 31,2017,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 1,2018:
_______ 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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