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 60 million, $2 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $20 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 in the tabs below GeneralPar value Journal 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 is required for a transaction/event, select "No journal entry required" in the first account field.) Mew trenaaction lat iew journal entry worksheet No Event General Journal Debit Credit No Transaction Rocorded

Explanation / Answer

Solution: No. Event General Journal Debit Credit 1. 1 No Journal entry required Notes: if it is not to be effected in the form of a stock dividend, it will just reduced par value to half for 2-for-1 stock split . Old par value x 1/2 = $2 x 1/2 = $1 You have to enter "No Journal entry required " not No Transaction Recorded 2nd Par value $1 per share Notes: Old par value x 1/2 = $2 x 1/2 = $1 Please feel free to ask if anything about above solution in comment section of the question.

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