Exercise 11-15A Determining the effects of stock splits on the accounting record

Question

Exercise 11-15A Determining the effects of stock splits on the accounting records LO 11-4 The market value of Yeates Corporation's common stock had become excessively high. The stock was currently selling for $360 per share. To reduce the market price of the common stock, Yeates declared a 3- for-1 stock split for the 400,000 outstanding shares of its $10 par value common stock. Required b. Determine the number of common shares outstanding and the par value after the split. (Round par value answer to 2 decimal places.) Number of common shares outstanding Par value per share after the split

Explanation / Answer

b. Number of common shares outstanding
= 400,000 x 3 / 1 = 1,200,000 Shares

Par value per share after the spilt = 10 / 3 = 3.33 per share

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