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?



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  • CreatedSeptember 10, 2014
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