Italian Imports, Inc. recently reported the following stockholders’ equity: 

Suppose Italian Imports, Inc. split its common stock 2-for-1 in order to decrease the market price per share of its stock. The company’s stock was trading at $17 per share immediately before the split. 

Requirements 

1. Prepare the stockholders’ equity section of the Italian Imports, Inc. balance sheet after the stock split. 

2. Were the account balances changed or unchanged after the stock split?

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Stockholders' Equity Paid-In Capital: Common Stock-$1 Par Value; 480,000,000 shares authorized, 114,000,000 shares issued and outstanding Paid-In Capital in Excess of Par-Common Total Paid-In Capital Retained Earnings Total Stockholders' Equity $ 114,000,000 140,000,000 254,000,000 650,000,000 $ 904,000,000