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

Question

On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 150 million, $1 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $30 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. General Journal Par value 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 ent required for a transaction/event, select "No journal entry required" in the first account field.) No Event General Journal Debit Credit Paid-in capital-excess of par Common stock 150

Explanation / Answer

Event Account Title Debit Credit 1 Common Stock - $1par 150000000 Common Stock - $0.50 par 150000000 (Entry to record split of 150 million shares of of $1 par into 300 million shares of $0.50 par) Par Value $0.50 per share

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