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 be distributed on July 1. The market price of Siewert common stock was $28 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Record the Journal Entry "stock split"

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Blaine Mitchell

Business

28 June, 00:41

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 be distributed on July 1. The market price of Siewert common stock was $28 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Record the Journal Entry "stock split"

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Pena · Answer 1

In the case of the stock split, no journal entry is required as it does not change the total value of the shareholder equity. It only changes the number of shares based on the stock split ratio. The total value would remain same. Moreover, no conversion is held.

All other information which is given is not relevant. Hence, ignored it