1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Artyom0805 [142]
2 years ago
13

On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 20 million, $5.00 par, common shares, t

o be distributed on July 1. The market price of Siewert common stock was $16 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
Business
1 answer:
umka21 [38]2 years ago
7 0

Answer:

a. No journal entry is required.

b. Par per share after the split = $2.50

Explanation:

a. 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.

No journal entry is required for this because the total value of the shares has not changed due to 2-for-1 stock split.

This is because the 2-for-1 stock split has only increased the number of shares outstanding by 2, but at the same time reduces the par value of the share by half making the total value of the shares to remain the same.

b. What is the par per share after the split.

As explained in a above, the effect of 2-for-1 stock split is to reduce the par value of the share by half.

Therefore, the par per share after the split can be calculated as follows:

Par per share after the split = Par per share before the split / 2 = $5 / 2 = $2.50

You might be interested in
Sin Qua Corporation is a company listed on the stock exchange and issues corporate bonds. Which statement is most likely true?
ch4aika [34]

Answer:

Investors will have to pay tax on the interest income received from the bonds.

Explanation:

Interest earned from corporate bonds and capital gained through corporate bond transactions is taxable income.  The interest earned from a corporate bond is subject to taxation by both the federal and state governments.

The government will not sell sin Qua corporation bonds as it is a public company.  Bonds do not pay interest quarterly but rather semi-annually or annually.  Again, the maturity of the bond is determined at the time they are issued. Creditworthiness will only affect the bond price but not its maturity period.

Investors will have to pay tax on the interest income received from the bonds is thus the correct statement.

8 0
3 years ago
You purchase a $30, nonrefundable ticket to a play at a local theater. Ten minutes into the show you realize that it is not a ve
Murljashka [212]

Answer:

1) You should go home and watch TV.

Explanation:

Since you value seeing the play $10, then you should leave the theater and go to your house to watch TV since that has a higher value for you ($12).

We are talking about opportunity costs here. Opportunity costs are the extra costs or benefits lost from choosing one activity or investment over another. In this case the opportunity costs are:

  • watch the play = $10
  • watch TV = $12
  • read a book = $8

Since watching TV is more valuable to you, then that is what you should be doing.  

3 0
2 years ago
?if a corporation issued $8,000,000 in bonds which pay 5% annual interest, what is the annual net cash cost of this borrowing if
MrRissso [65]
$8,000,000 - corporate issued
5 % -  annual interest
30 % - income tax rate
Annual net cash cost - ?

Formula and Solution - (8,000,000 x 0.05) x 0.7 = 280,000
Answer: The Annual net cash cost - $280,00
4 0
3 years ago
There are simultaneous changes in the demand for and supply of tablet​ devices, with the consequences being an unambiguous decre
lord [1]

Answer: c. Demand decreases and supply decreases.

Explanation:

When demand for tablets decrease, the demand curve shifts to the right. The price and quantity declines. At the same time, when supply also falls, the supply curve shifts to the left leading to an increase in price and a fall in quantity.

Since, decrease in demand and supply have opposite effect on the price there is no change in the price of tablets.

Both the forces work towards reducing quantity to quantity will fall unambiguously.

Thus, the correct option is c, Demand decreases and supply decreases.

3 0
3 years ago
Spending more money on homes and making the home environment pleasurable is a result of which consumer buyer behavior trend?
allochka39001 [22]
<span>This behavior trend where a consumer spends money on homes to make it pleasurable environment is called as cocooning. Cocooning means staying in a protective and comfortable way or place. It even means hiding yourself from real world which may not always be a ideal place.</span>
3 0
3 years ago
Other questions:
  • One recurring problem in supply chain management is when information about the demand for a product gets distorted as it passes
    10·1 answer
  • Jake is leaving Shoe Warehouse to open his own shoe boutique. Jake currently earns $40,000 a year at Shoe Warehouse, but he is e
    11·1 answer
  • In a product modification _______. an existing product s taste, texture, sound, smell, or appearance is usually altered the new
    5·1 answer
  • According to Keynesian theory, which of the following is not true at each short-term macro equilibrium?
    7·1 answer
  • If elodea is an aquatic plant, you can conclude that it releases which has into its environment as a result of photosynthesis?
    12·1 answer
  • What is networking and why is it useful when looking for a job?
    10·2 answers
  • In the Uniform Commercial Code, negotiable instruments are all of the following EXCEPT
    15·1 answer
  • Having just one error on a cover letter may eliminate an applicant from being considered for employment. t/f
    7·2 answers
  • _____ is a research technique whereby consumers are asked to generate an exhaustive list of things that bother them or difficult
    7·1 answer
  • Costs and benefits that should be ignored when making decisions are called ______ costs and benefits.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!