Question

On January 15, 2011, the board of directors of Mendoza International declared a 3-for-1 stock split of its $12 par value common stock, of which 1,600,000 shares were authorized and 400,000 were issued and outstanding. The market value on that date was $45 per share. On the same date, the balance of additional paid-in capital was $8,000,000, and the balance of retained earnings was $16,000,000. 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?



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  • CreatedSeptember 10, 2014
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