Rattler Canyon Construction, Inc , had the following stockholders equity at January 31 Stockholders Equity Paid in Capital Common Stock , $2 par, 600,000 shares authorized, 40,000 shares issued and outstanding $ 80,000 Paid in Capital in Excess of Par 32,000 Total Paid in Capital $112,000 Retained ...

Req 1 No entry is needed to record the stock split because the split affects no account balance ...

Rattler Canyon Construction, Inc., had the following stockholders equity at January 31: Stockholders Equity Paid-in Capital: Common

Question:

Rattler Canyon Construction, Inc., had the following stockholders’ equity at January 31:
Stockholders’ Equity
Paid-in Capital:
, $2 par, 600,000 shares authorized,
40,000 shares issued and outstanding......... $ 80,000
Paid-in Capital in Excess of Par............. 32,000
Total Paid-in Capital............... $112,000
Retained Earnings.................. 400,000
Total Stockholders’ Equity............. $512,000

On February 28, Rattler Canyon Construciton, Inc., split its common stock 5-for-1.

Requirements
1. Make any necessary entry to record the stock split.
2. Prepare the stockholders’ equity section of the immediately after the 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...