On September 1, Ziegler Corporation had 50,000 shares of $5 par value common stock, and $1,500,000 of

Question:

On September 1, Ziegler had 50,000 shares of $5 common stock, and $1,500,000 of retained earnings. On that date, when the market price of the stock is $15 per share, the issues a 2-for-1 stock split. The general journal entry to record this transaction is:
a). Debit Retained Earnings $750,000; credit Split Distributable $750,000.
b). Debit Retained Earnings $750,000; credit $750,000.
c). Debit Retained Earnings $250,000; credit $250,000.
d). Debit Retained Earnings $250,000; credit Stock Split Payable $250,000.
e). No entry is made for this transaction.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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,...