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Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881

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Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881
Textbook Problem
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26. What is the effect of a stock split on stockholders’ equity account balances?

To determine

Concept introduction:

Stock split:

Stock split refers to the dividing one share into two of more shares. It is usually done to make the share available for small investor with smaller value. A stock split does not affect the total stockholder’s equity and it also does not require any journal entry.

To indicate:

The effect of the stock split on the stockholder’s equity account balance.

Explanation

Stock split refers to the dividing one share into two of more shares. It is usually done to make the share available for small investor with smaller value...

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