On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 120 million, $5 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $23 on June 13.   Prepare a journal entry that summarizes the declaration and distribution of 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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 120 million, $5 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $23 on June 13.
 
Prepare a journal entry that summarizes the declaration and distribution of 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?

Prepare a journal entry that summarizes the declaration and distribution of 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.)

Record the declaration and distribution of the stock split.

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