Effective April 27, 2017, Dorr Corporation's shareholders approved a two-for-one split of the company's common stock and

Question:

Effective April 27, 2017, Dorr Corporation's shareholders approved a two-for-one split of the company's common stock and an increase in authorized common shares from 100,000 shares (par value of $20 per share) to 200,000 shares (par value of $10 per share). The stock split shares were issued on June 30, 2017. Dorr accounts for the split as a stock split (as opposed to a stock dividend). At the date of declaration, the fair value of each share of stock $60. Dorr's shareholders' equity accounts immediately before issuance of the stock split shares were:

Common stock, par value $20; 100,000 shares authorized......$1,000,000

50,000 shares outstanding

Additional paid-in capital................................................150,000

Retained earnings.......................................................1,350,000

Required:

After issuing the stock split shares, what are the balances of the Additional paid-in capital and Retained earnings accounts in Dorr's June 30, 2017, statement of shareholders' equity?

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... 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,...