Suppose Pier 1 Imports has common stock, \($1\) par, 500,000 shares authorized, 100,000 shares issued and outstanding. The company decided to split its common stock 2-for-1 in order to decrease the market price of its stock. The company’s stock was trading at \($20\) immediately before the split.

1. Show how the common stockholders’ equity would appear in the stockholders’ equity section of Pier 1 Imports’ balance sheet after the stock split.

2. Which account balances changed after the stock split? Which account balances were unchanged?