Ask Question
BusinessBusiness
2 September, 00:07

On September 1, Ziegler Corporation had 58,000 shares of $5 par value common stock, and $174,000 of retained earnings. On that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. The general journal entry to record this transaction is:

+1
Answers (2)
  1. 2 September, 00:17
    0
    No entry is made for this transaction.

    Explanation:

    In order to be able to solve this question correctly, one needs to understand the basics of stock split. The term "stock split" in finance can simply be defined as the introduction and sharing of new stocks to the existing shareholders or simply the Increase in the amount of stock in a company. It is a good indicator for shareholders to buy.

    The Important thing to take note under stock split is that the numbers of par value does not change as well as the number of shares. Therefore, there is no need for Common stock split account and Debit Retained Earnings.
  2. 2 September, 00:36
    0
    hi your question lacks the required options here are the options

    Debit Retained Earnings $290,000; credit Stock Split Payable $290,000.

    Debit Retained Earnings $290,000; credit Common Stock $290,000.

    Debit Retained Earnings $870,000; credit Common Stock Split Distributable $870,000.

    Debit Retained Earnings $870,000; credit Common Stock $870,000.

    Answer : No entry is made for this transaction.

    Explanation:

    The general journal entry to record this transaction is : no entry is made for this transaction. this is because in a stock split only the number of shares and par value shares would change and this does not affect the total amount of par value shares and other paid in capital. therefore the general journal entry to this record does not need any entry, rather a memo may be passed to the effect of change in number of shares
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On September 1, Ziegler Corporation had 58,000 shares of $5 par value common stock, and $174,000 of retained earnings. On that date, when ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
You are considering a project with an initial cost of $7,500. What is the payback period for this project if the cash inflows are $1,100, $1,640, $3,800, and $4,500 a year over the next four years, respectively? A. 3.21 years B. 3.28 years C. 3.
Answers (1)
An investor is committed to purchasing 100 shares of World Port Management stock in six months. She is worried the stock price will rise significantly over the next six months.
Answers (1)
Why Do Organizations not change in response to environmental pressures?
Answers (1)
A property owner has agreed to allow a shopping mall access across her private road in order to allow shopping mall customers to get from the shopping mall parking lot to the street.
Answers (1)
Suppose that the government imposes a $10 tax on Humbugs. The pre-tax price of Humbugs was $50, and neither supply nor demand is perfectly elastic or perfectly inelastic.
Answers (1)
New Questions in Business
Valera Corporation makes a product with the following standards for labor and variable overhead: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct labor 0.4 hours $ 21.00 per hour $ 8.40 Variable overhead 0.4 hours $ 6.
Answers (1)
Which of the following are tasks associated with business administration positions? a. answering phones b. designing goods for production c. delivering goods to markets d. maintaining records e. repairing computers
Answers (1)
Pepe, Incorporated acquired 60% of Devin Company on January 1, 2017. On that date Devin sold equipment to Pepe for $45,000. The equipment had a cost of $120,000 and accumulated depreciation of $66,000 with a remaining life of 9 years.
Answers (1)
Which statement is incorrect? a. Dividends represent a distribution by a corporation to its stockholders. b. Dividends are shown on the income statement. c. Dividends reduce stockholders' equity, thus the Dividends account increases on the left side.
Answers (1)
Which of the following could result in the termination and liquidation of a partnership?1) Partners are incompatible and choose to cease operations. 2) There are excessive losses that are expected to continue. 3) Retirement of a partner. A. 1 onlyB.
Answers (1)
Home » Business » On September 1, Ziegler Corporation had 58,000 shares of $5 par value common stock, and $174,000 of retained earnings. On that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split.
Sign Up Forgot Password?