According to a news story, "The shareholders of QED approved a 1-for-10 reverse split of QED's common stock. Accounting for a reverse stock split applies the same principles as accounting for a regular stock split. QED Exploration, Incorporated, is an oil development company operating in Texas and Louisiana. QEDs stockholders' equity section before the reverse split included the following EB (Click the icon to view the stockholders' equity before the split.) Read the requirements Requirement 1. Prepare QED's stockholders' equity section after the reverse stock split Common stock, authorized shares, issued shares Additional paid-in capital Retained income Less: Treasury stock, at cost shares Requirement 2. Comment on a possible reason for a reverse split Since the number of shares is the reverse split, to the reverse split, the value of each share should be This is one motivation for the market value of each share. Data Table Common stock, authorized 30,000.000 shares, issued 23,530,000 shares Additional paid-in capital Retained income Less: Treasury stock, at cost, 1,017,550 shares Total stockholders' equity 287,637 3,437,547 2,220,895 (305.250) 5.640,829 Print Done