Jurgen's Farms Inc. recently reported the following shareholders' equity: Common shares, 250,000 shares authorized, 55,000 shares issued

Question:

Jurgen's Farms Inc. recently reported the following shareholders' equity:
Common shares,
250,000 shares authorized, 55,000 shares issued and outstanding................$121,500
Retained earnings..........................................................................210,500
Total shareholders' equity...............................................................$332,000
Suppose Jurgen's Farms split its common shares 2 for 1 in order to decrease the market price of its shares. The company's shares were trading at $83.00 immediately before the split.
1. Prepare the shareholders' equity section of Jurgen's Farms Inc.'s after the stock split.
2. Which account balances changed after the stock split? Which account balances were unchanged?
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...