Upton Travel, Inc. had the following shareholders equity at May 31: Shareholders Equity Share Capital: Common Shares,
Question:
Upton Travel, Inc. had the following shareholders’ equity at May 31:
Shareholders’ Equity
Share Capital:
Common Shares, 200,000 shares authorized,
50,000 shares issued and outstanding .....$600,000
Total Share Capital............$600,000
Retained Earnings............. 200,000
Total Shareholders’ Equity.........$800,000
On June 30, Lipton Travel, Inc. split its common shares 2-for-1.
Requirement
1. Make any necessary entries to record the stock split.
2. Prepare the shareholders’ equity section of the balance sheet immediately after the split.
Balance SheetBalance 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...
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Related Book For
Financial Accounting
ISBN: 978-0132889711
1st Canadian Edition
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper
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