Sir Win – Accounting Lectures

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Lecture 10: Share Split
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On January 1, 2021, the records of Wendell Corporation showed the
following balances:

Ordinary Share, P5 par, 200,000 share authorized

20,000 share issued, 15,000 shares outstanding 100,000
Share Premium 20,000
Retained Earnings 150,000
Treasury Share, 5,000 shares at P12 cost (60,000)
Total Shareholder’s Equity 210,000

On March 11, 2021, the board of directors declared a 2-for-1 share split
when the market price of the share was P25.

1. Prepare the entries to record the share split.

2. Assuming that the entity declared a 1-for-2 reversed split, what will be
the entries to record the split down.