Kinmi Financial Corporation is the parent company of Kinmi Bank. The company\'s

Question

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 (Nasdaq), 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 common stock then held. Distribution of additional shares issued as a result of the split is expected to occur on or about February 15 At the time of the stock split, 44.5 million shares of common stock, $.001 par per share, were outstanding Required: 1. Prepare the journal entry, if any, that Kinmi recorded at the time of the stock split. 3. If Kinmi's stock price had been $56 at the time of the split, what would be its approximate value after the split (other things equal)? Complete this question by entering your answers in the tabs below. Required 1Required 3 Prepare the journal entry, if any, that Kinmi recorded at the time of the stock split. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet Record the stock split effected in the form of stock dividend Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal

Explanation / Answer

Particular

Paid in Capital Excess of Par

    To Common Stock(44.5 Millian shares *.001 per shares)

If Kinmi's stock price had been $56 at the time of stock split ,approximate value after stock split (other things equal) would be( $56)*(1/2)

Approximate Value

Kinmi Financial Corporation Journal Entry

Particular

Amount (Dr) Amount (Cr) 1)

Paid in Capital Excess of Par

$    44,500.00

    To Common Stock(44.5 Millian shares *.001 per shares)

$        44,500.00 3)

If Kinmi's stock price had been $56 at the time of stock split ,approximate value after stock split (other things equal) would be( $56)*(1/2)

$            28.00

Approximate Value

$28 Per share

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