Yanama Ltd. has 170,000 common shares outstanding with a carrying value of $16 per share. Yanama declares a 1-for-5 reverse stock split.
a) How many shares are outstanding after the split?
b) What is the carrying value per share after the split?
c) What is the total carrying value after the split?
d) What journal entry is necessary to record the split?
Hi, so I got the answer for c) which is 2,720,000 and d) which is no entry.
However, I needed help with the first two. Thanks.
I thought a) was 850,000 but its wrong apparently.