On September 1, Ziegler Corporation had 53,000 shares of $5 par value common stock, and $159,000 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:

Question

Jeramiah Allen

Business

6 November, 23:01

On September 1, Ziegler Corporation had 53,000 shares of $5 par value common stock, and $159,000 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:

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Daniel Humphrey · Answer 1

No entry is made for this transaction

Explanation:

Given:

The liability side of a balance sheet:

In this scenario, Ziegler Corporation split his shares, a 2-for-1 stock split.

According to company law, there is no Particular entry will be made for split share, because it has no impact on the total equity amount.

Only a memo entry will be created to recognize this type of transaction.