Effective April 27, 2014, Dorr Corporations shareholders approved a two-for-one split of the companys common stock and

Question:

Effective April 27, 2014, Dorr Corporation’s shareholders approved a two-for-one split of the company’s and an increase in authorized common shares from 100,000 shares of $20 per share) to 200,000 shares 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, $20; 100,000 shares authorized;
50,000 shares outstanding $1,000,000
Additional paid-in capital 150,000
Retained earnings 1,350,000

Required:
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?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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,...