Janae Corporation has outstanding 10,000 shares of £10 par value ordinary shares and retained earnings of £500,000.If Janae declares a 2-for-1 share split when the fair value of the shares is £85 per share, the entry includes:

Question

Quizplus · Accepted Answer

A share split does not require a journal entry as it does not affect the total equity of the company. It only increases the number of shares and decreases the par value per share proportionally.

Janae Corporation Has Outstanding 10,000 Shares of £10 Par Value