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The Baxter Company has 30,000 shares of $3 par common stock outstanding. The companys board...

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Accounting

The Baxter Company has 30,000 shares of $3 par common stock outstanding. The companys board of directors declares a 3-for-1 stock split when the market price is $9 per share. Which of the following statements are correct? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer )

a. After the stock split, the company will have 10,000 shares, each with an approximate market value of $9.

b. After the stock split, the company will have 90,000 shares, each with an approximate market value of $3.

c. The par amount of the shares becomes $1 per share.

d. No journal entry is recorded.unanswered

Knowledge Check 02 Craft declares and distributes a 2-for-1 stock split in the form of a 100% stock dividend and distributes 1,000 shares when the market value of the $1 par common stock is $12 per share. The company chooses not to reclassify earned capital as invested capital with regards to this transaction. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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