Prezario's has 25,000 shares of stock outstanding with a par value of $1 per share. The current market value

South Shore Limited has 21,000 shares of stock outstanding with a par value of $1 per share and a market price of $7.50 a share. The firm just announced a 5-for-2 stock split. What will the par value of the stock be after the split?    A.  $0.40 B.  $0.80 C.  $1.00 D.  $1.40 E.  $1.60 Par value = $1 × (2/5) = $0.40

75.

Mario's has 18,000 shares of stock outstanding with a par value of $1 per share and a market price of $4 a share. The balance sheet shows $18,000 in the common stock account, $368,000 in the paid in surplus account, and $64,000 in the retained earnings account. The firm just announced a 5-for-1 stock split. What will the paid in surplus account value be after the split?    A.  $336,000 B.  $368,000 C.  $426,000 D.  $548,000 E.  $606,000 A stock split does not change the total value of the paid in surplus account.

76.

Prezario's has 25,000 shares of stock outstanding with a par value of $1 per share. The current market value of the firm is $847,000. Currently, the retained earnings account balance is $428,000 and the capital in excess of par value account balance is $187,000. The company just announced a 3-for-1 stock split. What is the common stock account balance after the stock split?    A.  $8,333 B.  $25,000 C.  $75,000 D.  $77,333 E.  $232,000 Common stock account value before the stock split = 25,000 × $1 = $25,000 A stock split does not change the total value of the common stock account.