Question - Determining shareholders' equity after a stock split
Effective April 27, 2017, Dorr Corporation's shareholders approved a two-for-one split of the company's common stock and an increase in authorized common shares from 100,000 shares (par value of $20 per share) to 200,000 shares (par value of $10 per share}. The stock split shares were issued on June 30, 2017. Dorr accounts for the split as a stock split (as opposed to a stock dividend). At the date of declaration, the fair value of each share of stock $60. Dorr's shareholders' equity accounts immediately before issuance of the stock split shares were:
Common stock, par value $20; 100,000 shares authorized; 50,000 shares outstanding - $1,000,000
Additional paid-in capital - 150,000
Retained earnings - 1,350,000
Required:
After issuing the stock split shares, what are the balances of the Additional paid-in capital and Retained earnings accounts in Dorr's June 30, 2017, statement of shareholders' equity?