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According to a news story, "The shareholders of QED approved a 1-for-10 reverse split of...

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Accounting

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According to a news story, "The shareholders of QED approved a 1-for-10 reverse split of QED's common stock. Accounting for a reverse stock split applies the same principles as accounting for a regular stock split. QED Exploration, Incorporated, is an oil development company operating in Texas and Louisiana. QED's stockholders' equity section before the reverse split included the following: click the icon to view the stockholders' equity before the split.) Read the requirements. Requirement 1. Prepare QED's stockholders' equity section after the reverse stock split Common stock, authorized Additional paid-in capital Retained income Less: Treasury stock, at cost, Total stockholders' equit shares, issued shares shares Requirement 2. Comment on a possible reason for a reverse split. Since the number of shares is of each share the reverse split, the value of each share should be | This is one motivation for the reverse split, to | the market value

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