Analyzing a Stock SplitLandry Inc. has 60,000 shares of common stock, $1 par outstanding. On September 30, 2020, Landry declares a 2-for-1 stock split when the fair value of its common stock is $30 per share. Distribution of the shares will be on October 15, 2020.a. Prepare the journal entry for the declaration of the stock split on September 30, 2020. b. Prepare the journal entry for the distribution of the stock split on October 15, 2020. Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Date Account NameDr.Cr.a.Sept. 30, 2020 AnswerAnswer AnswerAnswerb.Oct. 15, 2020 AnswerAnswerc. What is the total par value of common stock before and after the stock split? Total par value before the stock splitAnswerTotal par value after the stock splitAnswer d. What is the par value per share before and after the stock split? Par value per share before the stock splitAnswerPar value per share after the stock splitAnswer e. What are the total number of shares before and after the stock split?Total shares before the stock splitAnswerTotal shares after the stock splitAnswer

Step 1:- Split shares mean when the number of shares is increased without change in the value of the…

Answered: Landry Inc. has 60,000 shares of common…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Analyzing a Stock Split

Landry Inc. has 60,000 shares of common stock, $1 par outstanding. On September 30, 2020, Landry declares a 2-for-1 stock split when the fair value of its common stock is $30 per share. Distribution of the shares will be on October 15, 2020.

a. Prepare the journal entry for the declaration of the stock split on September 30, 2020.
b. Prepare the journal entry for the distribution of the stock split on October 15, 2020.

Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero).

Date		Dr.	Cr.
a.	Sept. 30, 2020	Answer	Answer
		Answer	Answer
b.	Oct. 15, 2020
		Answer	Answer

c. What is the total par value of common stock before and after the stock split?

Total par value before the stock split	Answer
Total par value after the stock split	Answer

d. What is the par value per share before and after the stock split?

Par value per share before the stock split	Answer
Par value per share after the stock split	Answer

e. What are the total number of shares before and after the stock split?

Total shares before the stock split	Answer
Total shares after the stock split	Answer

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