Clubhouse Landing, Inc. had the following shareholders equity at May 31: Shareholders Equity Share Capital: Common Shares,

Question:

Clubhouse Landing, Inc. had the following shareholders’ equity at May 31:

Shareholders’ Equity

Share Capital:

Common Shares, 30,000 shares authorized,

10,000 issued and outstanding...... $ 30,000

Total Share Capital............ 30,000

Retained Earnings............ 700,000

Total Shareholders’ Equity........$730,000

On June 30, Clubhouse Landing, Inc. split its common shares 5-for-1. Requirements

1. Make any necessary entries to record the stock split.

2. Prepare the shareholders’ equity section of the balance sheet immediately after the split.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...