On August 10, 2011, the board of directors of Pearl International declared a 3-for-1 stock split of

Question:

On August 10, 2011, the board of directors of Pearl International declared a 3-for-1 stock split of its $9 par value common stock, of which 400,000 shares were authorized and 125,000 were issued and outstanding. The market value on that date was $60 per share, the balance of additional paid-in capital was $3,000,000, and the balance of retained earnings was $3,250,000.

Prepare the stockholders’ equity section of the company’s balance sheet after the stock split. What entry, if any, is needed to record the stock 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... 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,...