Accounting for a stock split [5-10 min]Decorator Plus Imports recently reported the follow...

Accounting for a stock split [5-10 min]

Decorator Plus Imports recently reported the following stockholders’ equity (adapted except par value per share)

Suppose Decorator Plus split its common stock 2 for 1 in order to decrease the market price per share of its stock. The company’s stock was trading at $20 per share immediately before the split.

Requirements

1. Prepare the stockholders’ equity section of Decorator Plus Imports’ balance sheet after the stock split.

---

2.Were the account balances changed or unchanged after the stock split?