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Homework answers / question archive / On August 10, 2020, Geller, Inc
On August 10, 2020, Geller, Inc.'s board of directors declared a 3-for-1 stock split of its $9 par value common stock, of which 400,000 shares were authorized and 125,000 were issued and outstanding. The market value on that date was $60 per share. On the same date, the balance of additional paid- in capital was $3,000,000, and the balance of retained earnings was $3,250,000. Prepare the stockholders' equity section of the company's balance sheet BEFORE and AFTER the stock split. MUST be formally written as shown in the homework example to receive full credit.
| Geller Inc | |
| Balance Sheet | |
| Stockholders Equity Section | |
| August 10, 2020 (Before Stock split) | |
| Stockholders Equity | |
| Common stock ($9 par value, 400,000 shares authorized, 125,000 shares issued and outstanding) | $ 1,125,000 |
| Paid in capital In excess of par value, Common stock | $ 3,000,000 |
| Total paid in capital | $ 4,125,000 |
| Retained earnings | $ 3,250,000 |
| Total stockholders Equity | $ 7,375,000 |
| Geller Inc | |
| Balance Sheet | |
| Stockholders Equity Section | |
| August 10, 2020 (After Stock split) | |
| Stockholders Equity | |
| Common stock ($3 par value, 400,000 shares authorized, 375,000 shares issued and outstanding) | $ 1,125,000 |
| Paid in capital In excess of par value, Common stock | $ 3,000,000 |
| Total paid in capital | $ 4,125,000 |
| Retained earnings | $ 3,250,000 |
| Total stockholders Equity | $ 7,375,000 |
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