Question

Decor Plus Imports recently reported the following stockholders’ equity:
Stockholders' Equity
Paid-In Capital:
Common Stock—$1 Par Value; 550,000,000 shares authorized, 110,000,000 shares issued and outstanding ......... $ 110,000,000
Paid-In Capital in Excess of Par—Common .... 154,000,000
Total Paid-In Capital ............. 264,000,000
Retained Earnings ............. 645,000,000
Total Stockholders' Equity ........ $ 909,000,000
Suppose Decor Plus split its common stock 2-for-l in order to decrease the market price per share of its stock. The company’s stock was trading at $21 per share immediately before the split.
Requirements
1. Prepare the stockholders’ equity section of the Decor Plus Imports balance sheet after the stock split.
2. Were the account balances changed or unchanged after the stock split?


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  • CreatedJune 15, 2015
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