Computing par value of stock after split


a. On December 10, Daniel Co split its stock 5-for-2 when market value was $65 per share. Previous to Split, Daniel had 200,000 shares of $15 par value stock. After split the par value of stock was?

 

b. At December 31, 2007 Reed Corp owed notes payable of $1,000,000 with maturity date of April 30, 2008, these notes did not arise from transactions in normal course of business. On February1, 2008, Reed issued $3,000,000 of 10 year bonds with intention of using part of bond proceeds to liquidate $1,000,000 of notes payable. Reeds December 31, 2007, financial statements were issued on March 29. How much of $1,000,000 notes payable must be classified as current in Reeds balance sheet at December, 2007?

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Accounting Basics: Computing par value of stock after split
Reference No:- TGS021527

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