Accounting for stock splits (Learning Objectives 5 & 7) 10–15 min.

Tour Dejour, Inc., had the following stockholders’ equity at January 31:

Paid-in Capital:

Common Stock, $5 par, 500,000 shares authorized, 30,000 shares issued and outstanding Paid-in Capital in Excess of Par Total Paid-in Capital Retained Earnings Total Stockholders’ Equity

$ 150,000 450,000

$ 600,000 550,000

$1,150,000 Stockholders’ Equity On February 28, Tour Dejour, Inc., split its common stock 2-for-1.

Requirements 1. Make any necessary entry to record the stock split.

2. Prepare the stockholders’ equity section of the balance sheet immediately after the split.

AppendixLO1