A stock split requires no formal journal entry and may be recognized simply by a memorandum notation in the general journal and in the appropriate capital stock accounts.

Question

Quizplus · Accepted Answer

A stock split does not affect the total equity of the company, only the number of outstanding shares and the par value per share, so no formal journal entry is required. A memorandum notation in the general journal and in the appropriate capital stock accounts is sufficient to reflect the split.

A Stock Split Requires No Formal Journal Entry and May