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 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...