How would a stock split in which the par value per share
decreases in proportion to the number of additional shares issued
affect each of the following?

Additional paid-in capital
Retained earnings

(b) A stock split does not affect either the balance of the
additional paid-in capital or the retained earnings accounts. The
number of shares outstanding and the par value per share merely
change in proportion to each other. When this occurs, only a
memorandum entry is made.