Prezario's has 25,000 shares of stock outstanding with a par value of $1 per share. The current market value of the firm is $847,000. Currently, the retained earnings account balance is $428,000 and the capital in excess of par value account balance is $187,000. The company just announced a 3-for-1 stock split. What is the common stock account balance after the stock split?

Respuesta :

Based on the information given the common stock account balance after the stock split is $25,000.

Using this formula

Common stock account balance=Shares of stock outstanding× Par value

Where:

Shares of stock outstanding=25,000

Par value=$1

Let plug in the formula

Common stock account balance=25,000×$1

Common stock account balance=$25,000

Inconclusion the common stock account balance after the stock split is $25,000.

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