On January 15, 2014, Agard Internationals board of directors declared a 3-for-1 stock split of its $12
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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 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...
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Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
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