On 1 January 2013, Parquet Sales issued 40 000 ordinary shares at $1.00 per share. In mid- 2014, the board of directors approved a 2- for- 1 share split. After the share split, what will the balance sheet show as the number of shares issued?

Question

Quizplus · Accepted Answer

A 2-for-1 share split doubles the number of shares issued. Therefore, the original 40,000 shares will become 80,000 shares after the split.

On 1 January 2013, Parquet Sales Issued 40 000 Ordinary