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Effective April 27, the shareholders of Dorr Corp. approved a 2-for-1 split of its common...

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Accounting

Effective April 27, the shareholders of Dorr Corp. approved a 2-for-1 split of its common stock and an increase in authorized common shares from 100,000 shares (par value $20 per share) to 200,000 shares (par value $10 per share). Dorrs equity accounts immediately before issuance of the stock-split shares were as follows:

Common stock, par value $20; 100,000 shares authorized; 50,000 shares outstanding

$1,000,000

Additional paid-in capital ($3 per share on issuance of common stock)

150,000

Retained earnings

1,350,000
The stock-split shares were issued on June 30. In Dorrs June 30 statement of equity, the balances of additional paid-in capital and retained earnings are

Additional

Retained

Paid-in Capital

Earnings
A.

$150,000

$350,000
B.

$150,000

$1,350,000
C.

$0

$500,000
D.

$1,150,000

$350,000

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