On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 80 million, $1.00 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $22 on June 13. Prepare a journal entry that summarizes the declaration and distribution of the stock split if it is to be effected in the form of a 100% stock dividend. What is the par per share after the split?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 4RE: Use the same facts as in RE 16-3, but instead assume that Pickens declares and issues a 50% stock...
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On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 80 million, $1.00 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $22 on June 13. Prepare a journal entry that summarizes the declaration and distribution of the stock split if it is to be effected in the form of a 100% stock dividend. What is the par per share after the split?

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