E11-3A Forward Stock split On March 1 of the current year, Sentry Corporation has 500,000 shares of $20 par value common stock that are used and outstanding. The general ledger shows that following account balances relating to the common stock: Common stock $10,000,000 Paid-in capital in excess of par value 3,400,000 On March 2, Sentry Corporation splits its stock 2 for 1 and reduces the par value to $10 per share.

a. How many shares of common stock are issued and outstanding immediately following the stock split?

b. What is the balance in the Common Stock account immediately following the stock split?

c. What is the balance in the Paid-in Capital in Excess of Par Value account immediately following the stock split?

d. Is a journal entry required to record the forward stock split? If yes, prepare the entry.