Charles Corporation currently has 250 000 shares of 1 par value
Charles Corporation currently has 250,000 shares of $1 par value common stock authorized with 100,000 shares outstanding. The board of directors declared a 2-for-1 split on May 15, 2014, when the market value of the common stock was $2.50 per share. The retained earnings balance on May 15 was $350,000. Additional paid-in capital on this date was $10,000. Prepare the stockholders’ equity section of the company’s balance sheet before and after the stock split. What entry, if any, would be necessary to record the stock split?

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help