On January 15, 2010, the board of directors of Tower International declared a 3-for-1 stock split of

Question:

On January 15, 2010, the board of directors of Tower International declared a 3-for-1 stock split of its $12 per value common stock, of which 3,200,000 shares were authorized and 800,000 were issued and outstanding. The market value of that date was $45 per share. On the same date, the balance of additional paid-in capital was $16,000,000, and the balance of retained earnings was $32,000,000. Prepare the stockholders’ equity section of the company’s balance sheet before and 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...