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

Schmitz Construction, Inc., had the following stockholders’ equity at January 31:

Paid-in Capital:

Common Stock, $2 par, 800,000 shares authorized, 60,000 shares issued and outstanding Paid-in Capital in Excess of Par Total Paid-in Capital Retained Earnings Total Stockholders’ Equity

$120,000 48,000

$168,000 214,000

$382,000 Stockholders’ Equity On February 28, Schmitz Construction, Inc., split its common stock 4-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