Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Reporting a Stock Split Starbucks Corporation disclosed the following on a recent stock split in its annual Form 10-K report for the year ended September
Reporting a Stock Split Starbucks Corporation disclosed the following on a recent stock split in its annual Form 10-K report for the year ended September 27, 2015. Stock Split (excerpt from Note 1)-On April 9, 2015, we effected a 2-for-1 stock split of our $0.001 par value common stock for shareholders of record as of March 30, 2015. All share and per-share data in our consolidated financial statements and notes has been retroactively adjusted to reflect this stock split. We adjusted shareholders' equity to reflect the stock split by reclassifying an amount equal to the par value of the additional shares arising from the split from retained earnings to common stock during the second quarter of fiscal 2015, resulting in no net impact to shareholders' equity on our consolidated balance sheets. In addition, the statement of equity for Starbucks on September 27, 2015, reported the following: the company increased common shares by 749.4 million shares, increased the common stock account by $0.8 million, and decreased retained earnings by $0.8 million related to this effected stock split. Required a. What journal entry did the company record for this effected stock split? Account Name Dr. Retained Earnings 0 x 0 Common Stock 00 x - cr
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started