Problem

Reporting stockholders’ equity after a stock split [10-15 min]Snake Golf Club, Corp., had...

Reporting stockholders’ equity after a stock split [10-15 min]

Snake Golf Club, Corp., had the following stockholders’ equity at December 31, 2011:

STOCKHOLDERS’ EQUITY

Paid-in capital:

Common stock, $1.00 par, 650 shares authorized, 290 issued..........................................................

$ 290

Paid-in capital in excess of par—common...............................................................................

580

Total paid-in capital ............................................................................................................

870

Retained earnings ...................................................................................................................................

2,900

Total stockholders’ equity.....................................................................................................................

$3,770

On June 30, 2012, Snake split its common stock 2 for 1.

Requirements

1. Make the memorandum entry to record the stock split.


2. Prepare the stockholders’ equity section of the balance sheet immediately after the split.

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