Question: Effective April 27 2014 Dorr Corporation s shareholders approved a two for one

Effective April 27, 2014, Dorr Corporation’s shareholders approved a two-for-one split of the company’s common stock and an increase in authorized common shares from 100,000 shares (par value of $20 per share) to 200,000 shares (par value of $10 per share). The stock split shares were issued on June 30, 2014. Dorr’s shareholders’ equity accounts immediately before issuance of the stock split shares were:
Common stock, par value $20; 100,000 shares authorized;
50,000 shares outstanding $1,000,000
Additional paid-in capital 150,000
Retained earnings 1,350,000

After issuing the stock split shares, what are the balances of the Additional paid-in capital and Retained earnings accounts in Dorr’s June 30, 2014, statement of shareholders’ equity?

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  • CreatedSeptember 10, 2014
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