First choice would entail Alcoa to account for the stock split by debiting paid-in capital for the par per share multiplied by the shares distributed. Then, Alcoa should credit common stock for the same quantity. The second option to account for the stock split would require no journal entry to be recorded. With either of these recordings, the par per share will not change so in turn the total shareholders' equity does not change (Averkamp,
First choice would entail Alcoa to account for the stock split by debiting paid-in capital for the par per share multiplied by the shares distributed. Then, Alcoa should credit common stock for the same quantity. The second option to account for the stock split would require no journal entry to be recorded. With either of these recordings, the par per share will not change so in turn the total shareholders' equity does not change (Averkamp,