Difference between revisions of "Account for Stock Split"
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#Write a memorandum entry to note the stock split. A memorandum entry is a short message entered into the general journal and also entered into a general ledger account; it is not a complete journal entry because it does not contain [[Understand Debits and Credits|debits and credits]]. Here is an example: "On May 1, 2017, a 2-for-1 stock split was declared for the common stockholders of record as of the end of the day May 19, 2017. The stock split will result in the number of issued and outstanding shares of common shares increasing from 100,000 shares to 200,000 shares and the par value per share decreasing from $1.00 to $0.50." | #Write a memorandum entry to note the stock split. A memorandum entry is a short message entered into the general journal and also entered into a general ledger account; it is not a complete journal entry because it does not contain [[Understand Debits and Credits|debits and credits]]. Here is an example: "On May 1, 2017, a 2-for-1 stock split was declared for the common stockholders of record as of the end of the day May 19, 2017. The stock split will result in the number of issued and outstanding shares of common shares increasing from 100,000 shares to 200,000 shares and the par value per share decreasing from $1.00 to $0.50." | ||
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==Tips== | ==Tips== | ||
