Pettygrove Company had 600,000 shares of $10 par value common stock outstanding. The amount of additional paid-in capital is $3,000,000, and Retained Earnings is $900,000. The company issues a 2-for-1 stock split. The market price of the stock is $26. What is the balance in the Common Stock account after this issuance?Multiple Choice$12,000,000$13,800,000$6,000,000$9,000,000

A company issues 10,000 shares of $0.05 par value common stock for $25 per share. Which of the following is recorded at issuance?Multiple ChoiceCredit Common Stock for $500.Credit Additional Paid-In Capital for $500.Credit Additional Paid-In Capital for $250,000.Credit Common Stock for $250,000.

Robinson's has 42,000 shares of stock outstanding with a par value of $1 per share and a market price of $44 a share. The balance sheet shows $42,000 in the common stock account, $495,000 in the paid in surplus account, and $490,000 in the retained earnings account. The firm just announced a 3-for-2 stock split. How many shares of stock will be outstanding after the split?Multiple Choice35,000 shares84,000 shares62,500 shares28,000 shares63,000 shares

A company issues 1 million shares of common stock with a par value of $0.11 for $15.90 a share. The entry to record this transaction includes a debit to Cash for:Multiple Choice$110,000 and a credit to Common Stock for $110,000.$15,900,000 and a credit to Common Stock for $15,900,000.$15,900,000, a credit to Common Stock for $110,000, and a credit to Additional Paid-in Capital for $15,790,000.$110,000, a debit to Capital Receivable for $15,790,000, a credit to Common Stock for $110,000, and a credit to Additional Paid-in Capital for $15,790,000.

Twin Towns, Incorporated, was authorized to issue 300,000 shares of common stock and originally issued 100,000 shares of $10 par value stock at $18 per share. Subsequently, 25,000 shares were repurchased at $20, of which 10,000 were subsequently resold at $23.Assume the company’s retained earnings balance is $120,000.Required:Prepare the stockholders’ equity section of Twin Towns’s balance sheet, including all appropriate disclosures.Briefly explain how the declaration and distribution of a 2-for-1 stock split subsequent to the above transactions would affect the stockholders’ equity section you have prepared.

A company issues 1,030 shares of its common stock for $30,900 cash. Prepare journal entries to record this event under each of the following separate situations.The stock has neither par value nor stated value.The stock has a $1 stated value.The stock has a $2 par value.