Analyze effect of stock split on financial statements. (LO 4)

Romax Company announced a 2-for-1 stock split on its common stock. Before the announcement, there were 120,000 shares of \(\$ 1\) par common stock outstanding. Determine how many shares of common stock will be outstanding after the stock split. What will be the par value of each share? What effect does the stock split have on total shareholders' equity?