On January 15, 2014, Agard Internationals board of directors declared a 3-for-1 stock split of its $12

Question:

On January 15, 2014, Agard International’s board of directors declared a 3-for-1 stock split of its $12 per value common stock, of which 1,600,000 shares were authorized and 400,000 were issued and outstanding. The market value on that date was $45 per share. On the same date, the balance of additional paid-in capital was $8,000,000, and the balance of retained earnings was $16,000,000. Prepare the stockholders’ equity section of Agard’s balance sheet before and after the stock split. What entry, if any, is needed to record the stock 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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Principles of Accounting

ISBN: 978-1133626985

12th edition

Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson

Question Posted: