Answer:
Siewert Inc.
a) Journal Entry:
A memo entry to show that there is a 2-for-1 split only with new par value of $0.50 for 80 million shares.
b) The par value after the split = $0.50
Explanation:
a) Data and Calculations:
Common Stock = 40 million shares
Par value = $1
Declared stock split = 2-for-1
Market price of stock = $15 on June 13
New Common Stock = 80 million shares (40 million * 2)
New Par Value of Stock = $0.50 ($1/2)
b) Siewert Inc. does not record any journal entry for the stock split. Instead, it prepares a memo entry in its journal that indicates the nature of the stock split (2-for-1) and indicates the new par value to be $0.50. The company's balance sheet will reflect the new par value and the new number of shares authorized, issued, and outstanding after the stock split, which has been multiplied by 2 as 80 million shares.
Founders: Benjamin Bejbaum · Olivier Poitrey · Didier Rappaport
Computer Chips are very small pieces of semiconducting material that contain integrated circuits.
Answer:
Debit Interest Expense $44,000;
Debit Notes Payable $27,608;
Credit Cash $71,608
Explanation:
When loan is acquired it increases cash and becomes a liability for the company. So cash is increased by debiting cash with $ 440,000 and liability is also increased by crediting notes payable. As the cash payment for the first year is $71,608 then it is credited .
The journal entry to record the first annual payment is as follows.
Debit Interest Expense $44,000;
Debit Notes Payable $27,608;
Credit Cash $71,608
Interest Expense = 10 % of $ 440,000= $ 44,000
As part of the Notes Payable is paid the notes payable is debited with an amount of $27,608. And cash is credited with an equal amount paid i.e. $ 71,608
