[deyion]

The common stock of Alexander Hamilton Inc. is currently selling at $120 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $70 per share. Nine million shares are issued and outstanding.

Prepare the necessary journal entries assuming the following.
A. The board votes a 2-for-1 stock split.
B. The board votes a 100% stock dividend.
C. Briefly discussed the accounting and securities market differences between these two methods of increasing the number of shares outstanding.

[VanessaHutchinson]

On July 31, 2007, the stockholders’ equity section of Charlie Company’s balance sheet consists of $12 par common stock, 54,000 shares issued andoutstanding, $648,000 , and retained earnings of $400,000, for a total stockholders equity of $1,048,000. Charlie is considering one of the following two courses of action:
1) declaring a 5% stock dividend on the outstanding stock.
2) effecting a 3-for-1 stock split , that will reduce par value to $4 per share.
Calculate the book value per share and outstanding shares assuming the company:
a. the does neither action ______________ ______________
b. declares the stock dividend ______________ ______________
c. effects the stock split. ______________ ______________

[anne46]

Share splits doesn't require journal entries. But if needed then these will be the entries:

Dr: Common Stock; $120 (old) $1,080,000,000
Cr: Common Stock; $60 (new) $1,080,000,000

Perhaps that would help you..

[anne46]

Share splits doesn't require journal entries. But if needed then these will be the entries:

Dr: Common Stock; $120 (old) $1,080,000,000
Cr: Common Stock; $60 (new) $1,080,000,000

Perhaps that would help you..