Decorator Plus Imports recently reported the following stockholders equity (adapted except par value per share): Suppose Decorator

Question:

Decorator Plus Imports recently reported the following stockholders€™ equity (adapted except per share):

Paid-in capital: Common stock, $1 par, 480,000,000 shares authorized, 114,000,000 sharcs issucd Paid-in capital in exces

Suppose Decorator Plus split its common stock 2 for 1 in order to decrease the market price per share of its stock. The company€™s stock was trading at $20 per share immediately before the split.
Requirements
1. Prepare the stockholders€™ equity section of Decorator Plus Imports€™ balance sheet after the stock split.
2. Were the account balances changed or unchanged after the stocksplit?

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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...