Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. effective april 27, the shareholders of dorr corp.

Effective April 27, the shareholders of Dorr Corp. approved a 2-for-1 split of its common...

80.2K

Verified Solution

Question

Accounting

Effective April 27, the shareholders of Dorr Corp. approved a 2-for-1 split of its common stock and an increase in authorized common shares from 100,000 shares (par value $20 per share) to 200,000 shares (par value $10 per share). Dorrs equity accounts immediately before issuance of the stock-split shares were as follows:

Common stock, par value $20; 100,000 shares authorized; 50,000 shares outstanding

$1,000,000

Additional paid-in capital ($3 per share on issuance of common stock)

150,000

Retained earnings

1,350,000
The stock-split shares were issued on June 30. In Dorrs June 30 statement of equity, the balances of additional paid-in capital and retained earnings are

Additional

Retained

Paid-in Capital

Earnings
A.

$150,000

$350,000
B.

$150,000

$1,350,000
C.

$0

$500,000
D.

$1,150,000

$350,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students