Bandara Gold Inc.’s equity section on the October 31, 2023, balance sheet showed the following information:

On November 15, 2023, Bandara’s board of directors declared a 3:1 share split to the shareholders of record on November 20 to be distributed on November 29. The market prices of the shares on November 15, 20, and 29 were $2.35, $0.76, and $0.83, respectively.

Required
1. Prepare the required entries for November 15, 20, and 29.
2. Prepare the equity section on the November 30, 2023, balance sheet, assuming profit earned during November 2023 was $273,000.

Analysis Component:
What effect did the share split have on the market price of Bandara’s shares and why?

Transcribed Image Text:

Common shares, unlimited shares authorized, 600,000 shares issued and outstanding............ Retained earnings........... $1,800,000 150,000