A firm decides to issue stock, pursuant to a stock split, on a 2-for-1 basis. What entry is necessary for this issuance?
a. Retained Earnings
Common Stock--Par Value
b. Additional Paid-in Capital
Common Stock--Par Value
c. Retained Earnings
Common Stock--Par Value
Common Stock--Additional Paid-in Capital
d. Common Stock--Par Value
Common Stock--Additional Paid-in Capital
Retained Earnings
e. No journal entry is necessary but the par value of the stock must be restated on a per share basis.
E
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Answer the following statement true (T) or false (F)
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