30. On September 1, a corporation earn ngs. On that date, stock 000 shares of s5

Question

30. On September 1, a corporation earn ngs. On that date, stock 000 shares of s5 par value common stock, and $1,000,000 of retained when the market price of the stock is $15 per share, the co rporation issues a 2-for-1 Split. The general journal entry to record this transaction (A) Retaned comcSple Dieterbutable (B) Retained earnings... (C) Retained Eamings (D) Retained earnings (E) No entry is made for this transaction Common Stock Split Distributable 750,000 750,000 Common Stock 750,000 250,000 250,000 Common Stoc 250,000 250,000 Stock split payabe A. A Above B. B Above. C. C Above. D. D Above E. E Above

Explanation / Answer

In case of 2 for 1 stock split, one outstanding share shall be split into two shares.

In this case, there is no need of any journal entry since there will be no change in the amount of paid up capital.

Correct Option is E) E above.

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