Charles Corporation currently has 250,000 shares of $1 par value common stock authorized with 100,000 shares outstanding.

Question:

Charles currently has 250,000 shares of $1 authorized with 100,000 shares outstanding. The board of directors declared a 2-for-1 split on May 15, 2014, when the market value of the was $2.50 per share. The retained earnings balance on May 15 was $350,000. Additional paid-in capital on this date was $10,000. Prepare the stockholders’ equity section of the company’s before and after the stock split. What entry, if any, would be necessary to record the stock split?

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... 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... 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,...