Problem:
A corporation, which had 18,000 shares of common stock outstanding, declared a 3-for-1 stock split.
Required:
Question 1: What will be the number of shares outstanding after the split?
Question 2: 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?
Question 3: Journalize the entry to record the stock split.
Note: Be sure to show how you arrived at your answer.