On August 10, the board of directors of Torrelli International declared a 3-for-l stock split of its $9 par value common stock, of which 800,000 shares were authorized and 250,000 were issued and outstanding. The market value on that date was $60 per share.

On the same date, the balance of paid-in capital in excess of par value, common was

$6,000,000, and the balance of retained earnings was $6,500,000. Prepare the stockholders' equity section of the company's balance sheet after the stock split. What jour- nal entry, if any, is needed to record the stock split? L01