220k views
0 votes
On september 1, ziegler corporation had 52,000 shares of $5 par value common stock, and $156,000 of retained earnings. on that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. the general journal entry to record this transaction is:

User Ptmono
by
7.7k points

1 Answer

7 votes

No entry is made

Only memorandum is recorded that as a result of stock split number of shares outstanding is increased from 50,000 shares to 100,000 shares [50000*2/1] and the par value of shares is decrease to $ 2.5 [5*1/2 ] per share

This is because stock split does not affect the balance of any account.

User Diogo Moreira
by
8.8k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories