(L.OBJ. 2) Accounting for a stock split [5-10 min] Décor City Imports recently reported...

(L.OBJ. 2) Accounting for a stock split [5-10 min]

Décor City Imports recently reported the following stockholders’ equity (adapted and in millions except par value per share):

Suppose Décor City split its common stock 2 for 1 in order to decrease the market price of its stock. The company’s stock was trading at $17 immediately before the split.

1. Prepare the stockholders’ equity section of Décor City Imports’ balance sheet after the stock split.

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