On January 15, the board of directors of Extell International declared a 3-for-l stock split of its $12 par value common stock, of which 800,000 shares were authorized and 200,000 were issued and outstanding. The market value on that date was $45 per share.

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

$4,000,000, and the balance of retained earnings was $8,000,000. Prepare the stockholders' equity section of the company's balance sheet before and after the stock split. What entry, if any, is needed to record the stock split? L01

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Contributed capital Preferred stock, $100 per share, 6 percent cumulative, 10,000 shares authorized, 200 shares issued and outstanding Common stock, $5 par value, 100,000 shares authorized, 10,000 shares issued, 9,000 shares outstanding Paid-in capital in excess of par value, common Total contributed capital Retained earnings $50,000 $ 20,000 28,000 78,000 $ 98,000 95,000 Total contributed capital and retained earnings Less treasury stock, common (1,000 shares at cost) $193,000 15,000 $178,000 Total stockholders' equity "The preferred stock is callable at $105 per share, and one year's dividends are in arrears.