Stock Split
Response to the following problem:
Holton Company currently has 9,000 shares of $12 par common stock outstanding that had been issued at an average price of $60 per share. It declares a three-for-one stock split.
Required:
Prepare whatever entry is necessary to record the stock split, assuming the following independent alternatives:
1. The par value is reduced to $4 per share.
2. The par value is reduced to $6 per share.
3. The par value is reduced to $3 per share.