On January 3, 2025, SY Company has 200,000, P10 par value ordinary shares outstanding having a market priceof P15. The shares were originally issued at P14. The total undistributed accumulated net earnings wereP4,000,000.On January 4, 2025, SY company declared a 2 for 1 stock split.Compute the balance of Retained earnings after the Stock Split.Compute the balance of Total Contributed Capital after the Stock Split.Assuming that the 2 for 1 stock split was a reverse split (split down), the Total stockholders Equity after the splitis

Stock Split is an equity decision in which the quantity of shares is increased by reducing its par…

Answered: On January 3, 2025, SY Company of P15.…

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On January 3, 2025, SY Company of P15. The shares were originally P4,000,000. On January 4, 2025, SY company

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On January 3, 2025, SY Company has 200,000, P10 par value ordinary shares outstanding having a market price
of P15. The shares were originally issued at P14. The total undistributed accumulated net earnings were
P4,000,000.
On January 4, 2025, SY company declared a 2 for 1 stock split.
Compute the balance of Retained earnings after the Stock Split.
Compute the balance of Total Contributed Capital after the Stock Split.
Assuming that the 2 for 1 stock split was a reverse split (split down), the Total stockholders Equity after the split
is

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