Saved Help Save & Exit Check my On June 13, the board of directors of Siewert In

Question

Saved Help Save & Exit Check my 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 distributed on July 1. The market price of Siewert common stock was $30 on June 13. be Prepare the journal entry to record the stock splt if t is notto 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 General JournalPar 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 entry is required for a transaction/event, select "No journal entry required" in the first account fieid.) View transaction list View journal entry worksheet No Event General Joumal Debit Credit Common stock 150.000.000 Common stock 150,000,000 Par value ) Prey 13 of 13

Explanation / Answer

1. No Journal Entry required

2. Par per share after split = $1 / 2 = $0.50

Explanation:

If a stock split is not to be effected in the form of a stock dividend, no entry is recorded. Since the shares double, but the balance in the common stock account is not changed, the par per share is reduced, to $0.50 in this instance.

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