Number of shares outstanding after the split


Problem:

A corporation, which had 15,000 shares of common stock outstanding, declared a 3-for-1 stock split.

(a) What will be the number of shares outstanding after the split?

(b) If the common stock had a market price of $240 per share before the stock split, what would be an approximate market price per share after the split?

(c) Journalize the entry to record the stock split.

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Accounting Basics: Number of shares outstanding after the split
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