Use the information below to answer the following question(s):Indicate how each event affects the elements of the financial statements. Use the following letters to record your answer in the box shown below each element. Use only one letter for each element. You do not need to enter amounts.Increase = I Decrease = D No Effect = NA(Note that "No Effect" means that the event does not affect that element of the financial statements or that the event causes an increase in that element and is offset by a decrease in that same element.) Grover Co. declared a 2-for-1 stock split. Before that announcement, Grover had 40,000 shares of outstanding common stock.
What will be an ideal response?
(NA) (NA) (NA) (NA) (NA) (NA) (NA)
Stock splits have no effect on the dollar amounts of assets, liabilities, and stockholders' equity. They only affect the number of shares of stock outstanding and the par value per share.
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On January 2, 20x5, Fresh Inc issued 20-year bonds payable with a face value of $1,000,000 and a face interest rate of 10 percent. The bonds were issued to yield a market interest rate of 9 percent. Interest is payable semi-annually on January 1 and July 1. In calculating the present value of the bond issue of January 2, 20x5, the factor used to calculate the present value of the $1,000,000 is
A) 10%, 20 periods. B) 5%, 40 periods. C) 9%, 20 periods. D) 4.5%, 40 periods.
When a business sells an item and collects a state sales tax on it, a current liability to the state arises
Indicate whether the statement is true or false
How are distributors different from wholesalers in consumer markets?
What will be an ideal response?
A diversification strategy can be risky when a firm is entering unfamiliar markets
Indicate whether the statement is true or false a. True b. False