Example 14: On June 30, 2021, when Ermler Co.'s stock was selling at $65 per share, its capital accounts were as follows: $3,000,000 Capital stock (par value $50; 60,000 shares issued) Premium on capital stock Retained earnings 600,000 4,200,000 1. If the board of directors declares a 2 for 1 stock split, capital stock would be 2. Prepare the required journal entries to record the declaration of stock split.

Example 14: On June 30,2021 , when Ermler Co.'s stock was selling at $65 per share, its capital accounts were as 1 1. If the board of directors declares a 2 for 1 stock split, capital stock would be 2. Prepare the required journal entries to record the declaration of stock split