On August 10, the board of directors of Perlman International declared a 3-for-1 stock split of its $9 par value common stock, of which 400,000 shares were authorized and 125,000 were issued and outstanding. The market value on that date was $60 per share. On the same date, the balance of additional paid-in capital was $3,000,000, and the balance of retained earnings was $3,250,000. Prepare the stockholders’ equity section of the company’s balance sheet after the stock split. What journal entry, if any, is needed to record the stock split?

Book Value for Preferred and Common Stock