Turner Corporation has 150,000 shares of $12 par value common stock issued and outstanding. The board of directors of Turner Corporation declared a 3-for-1 stock split. Required:What dollar amount would be shown for common stock on the balance sheet after the stock split?
What will be an ideal response?
$1,800,000
Before split: 150,000 outstanding shares × Par value of $12 per share = $1,800,000
After split: 450,000 outstanding shares (or 150,000 shares × 3) × Par value of $4 per share = $1,800,000
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The capital account balances for Donald & Hanes LLP on January 1, 2018, were as follows: Donald, capital$200,000Hanes, capital 100,000??Donald and Hanes shared net income and losses in the ratio of 3:2, respectively. The partners agreed to admit May to the partnership with a 35% interest in partnership capital and net income. May invested $100,000 cash, and no goodwill was recognized.?What is the balance of Donald's capital account after the new partnership is created?
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