On June 13, the board of directors of Siewert Inc, declared a 2-for-1 stock split on...

Question

Question

On June 13, the board of directors of Siewert Inc, declared a 2-for-1 stock split on its 120 million, $5 par, common shares,

Prepare the journal entry to record the stock split if it is not to be effected in the form of a stock dividend. (If no entry

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

1)

Event	General Journal	Debit	Credit
1	No Journal Entry Required

In stock split, No Journal Entry is Required as when the board of directors declared 2-for-1 stock split that means the total value of the shares will remain same while the number of shares of the company will be doubled and the par value of the shares will be half.

2) As the 2-for-1 stock split is declared that means for every 1 share they are going to split into 2 share. That means the par value of the 1 share will be divided into 2 shares.

Par value per share after stock split= $5 par/2= $2.50 per share

Par value $2.50 per share

Add a comment

Answer 2

Similar Homework Help Questions

On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on...

On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 60 million, $1.00 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $25 on June 13. Prepare the journal entry to record the stock split if it is to be effected in the form of a 100% stock dividend. What is the par per share after the split? PLEASE NOTE = $.50 and $12.50 were...
On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on...

On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 50 million, $10 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $26 on June 13. Prepare the journal entry to record the stock split if it is not to be effected in the form of a stock dividend. What is the par per share after the split? Complete this question by entering your answers...
Chapter 18-2. On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock...

Chapter 18-2. On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 60 million, $1 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $27 on June 13. Prepare the journal entry to record the stock split if it is not to be effected in the form of a stock dividend. What is the par per share after the split? Prepare the journal entry to...

Brief Exercise 18-14 (Algo) Stock split [LO18-8] On June 13, the board of directors of Siewert...

Brief Exercise 18-14 (Algo) Stock split [LO18-8] On June 13, the board of directors of Siewert Inc, declared a 2-for-1 stock split on its 100 million, S1 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $24 on June 13 Prepare a journal entry that summarizes the declaration and distribution of the stock split if it is not to be effected in the form of a stock dividend. What is the par...
On June 13, the board of directors of Siewert Inc. declared a 6% stock dividend on...

On June 13, the board of directors of Siewert Inc. declared a 6% stock dividend on its 50 million, $2 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $33 on June 13 Complete the below table to calculate the stock dividend. Prepare a journal entry that summarizes the declaration and distribution of the stock dividend. Complete this question by entering your answers in the tabs below. Stock Dividend General Journal Complete...
Brief Exercise 18-13 (Algo) Stock dividend (LO18-8] On June 13, the board of directors of Siewert...

Brief Exercise 18-13 (Algo) Stock dividend (LO18-8] On June 13, the board of directors of Siewert Inc declared a 6% stock dividend on its 50 million, $1 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $19 on June 13. Complete the below table to calculate the stock dividend. Prepare a journal entry that summarizes the declaration and distribution of the stock dividend. Complete this question by entering your answers in the...

Kinmi Financial Corporation is the parent company of kinmi Bank. The company's stock split was announced...

Kinmi Financial Corporation is the parent company of kinmi Bank. The company's stock split was announced in the following wire: LOS ANGELES (BUSINESS WIRE) Jan 20-Kinmi Financial Corporation (Nasdag), announced that the Board of Directors has approved a two-for-one stock split, to be effected in the form of a 100 percent common stock dividend. Kinmi Financial Corporation stockholders of record at the close of business on January 31 will receive one additional share of common stock for every share of...
($ in eees) $120,000 720,000 990,800 Common stock, 120 million shares at $1 par Paid-in capital-excess of par Retained earnings a. November 1, 2018, the board of directors declared a cash divid...

($ in eees) $120,000 720,000 990,800 Common stock, 120 million shares at $1 par Paid-in capital-excess of par Retained earnings a. November 1, 2018, the board of directors declared a cash dividend of $0.80 per share on its common shares, payable to shareholders of record November 15, to be paid December 1 b. On March 1, 2019, the board of directors declared a property dividend consisting of corporate bonds of Warner Corporation that Branch-Rickie was holding as an investment. The...
Kinmi Financial Corporation is the parent company of kinmi Bank. The company's stock split was announced...

Kinmi Financial Corporation is the parent company of kinmi Bank. The company's stock split was announced in the following wire: LOS ANGELES Jan. 20 BUSINESS WIRE-kinmi Financial Corporation (Nasdag), announced that the Board of Directors has approved a two-for-one stock split, to be effected in the form of a 100 percent common stock dividend. Kinmi Financial Corporation stockholders of record at the close of business on January 31 will receive one additional share of common stock for every share of...

On June 30, the board of directors of Sandals, Inc, declares and pays a 100% stock...

On June 30, the board of directors of Sandals, Inc, declares and pays a 100% stock dividend on its 25,000, $1 par, common shares. The market price of Sandals common stock is $30 on June 30. Record the stock dividend. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the stock dividend. Note: Enter debits before credits Transaction General Journal Debit Credit Record...

On June 13, the board of directors of Siewert Inc, declared a 2-for-1 stock split on...

Homework Answers

Add Answer to:
On June 13, the board of directors of Siewert Inc, declared a 2-for-1 stock split on...

Post as a guest

Earn Coins