Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant. To prepare: The journal entry to record the stock split.

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Answer 1

Question

Chapter 18, Problem 18.20E

(1)

To determine

Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.

To prepare: The journal entry to record the stock split.

(2)

To determine

To describe: The key factor that motivates H Corporation for declaring 2-for-1 stock split to be effected by a dividend payable in shares of common stock.

(3)

To determine

The approximate amount of stock price, if Corporation H’s stock price is $36 at the time of stock split.

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Brief Exercise 18-14 (Algo) Stock split [LO18-8] On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 60 million, $2 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $17 on June 13. Prepare a journal entry that summarizes the declaration and distribution of the stock split if it is not to be effected in the form of a stock dividend. What is the par per share after the split? Complete this question by entering your answers in the tabs below. General Journal Par value

Exercise 11-16A (Algo) Determining the effects of stock splits on the accounting records LO 11-7 The market value of Yeates Corporation's common stock had become excessively high. The stock was currently selling for $260 per share. To reduce the market price of the common stock, Yeates declared a 4-for-1 stock split for the 230,000 outstanding shares of its $10 par value common stock. Required: b. Determine the number of common shares outstanding and the par value after the split. Note: Round par value answer to 2 decimal places. Number of common shares outstanding Par value per share after the split

Exercise 11-16A (Algo) Determining the effects of stock splits on the accounting records LO 11-7 The market value of Yeates Corporation's common stock had become excessively high. The stock was currently selling for $270 per share. To reduce the market price of the common stock, Yeates declared a 3-for-1 stock split for the 310,000 outstanding shares of its $12 par value common stock. Required b. Determine the number of common shares outstanding and the par value after the split. (Round par value answer to 2 decimal places.) Number of common shares outstanding Par value per share after the split

Answer 2

Question

Chapter 18, Problem 18.20E

(1)

To determine

Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.

To prepare: The journal entry to record the stock split.

(2)

To determine

To describe: The key factor that motivates H Corporation for declaring 2-for-1 stock split to be effected by a dividend payable in shares of common stock.

(3)

To determine

The approximate amount of stock price, if Corporation H’s stock price is $36 at the time of stock split.

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Answer 3

Question

Chapter 18, Problem 18.20E

(1)

To determine

Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.

To prepare: The journal entry to record the stock split.

(2)

To determine

To describe: The key factor that motivates H Corporation for declaring 2-for-1 stock split to be effected by a dividend payable in shares of common stock.

(3)

To determine

The approximate amount of stock price, if Corporation H’s stock price is $36 at the time of stock split.

Expert Solution & Answer

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Answer 4

Question

Chapter 18, Problem 18.20E

(1)

To determine

Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.

To prepare: The journal entry to record the stock split.

(2)

To determine

To describe: The key factor that motivates H Corporation for declaring 2-for-1 stock split to be effected by a dividend payable in shares of common stock.

(3)

To determine

The approximate amount of stock price, if Corporation H’s stock price is $36 at the time of stock split.

Expert Solution & Answer

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Answer 5

Chapter 18, Problem 18.20E

(1)

To determine

Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.

To prepare: The journal entry to record the stock split.

(2)

To determine

To describe: The key factor that motivates H Corporation for declaring 2-for-1 stock split to be effected by a dividend payable in shares of common stock.

(3)

To determine

The approximate amount of stock price, if Corporation H’s stock price is $36 at the time of stock split.

Answer 6

Chapter 18, Problem 18.20E

(1)

To determine

Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.

To prepare: The journal entry to record the stock split.

Answer 7

Chapter 18, Problem 18.20E

(1)

To determine

Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.

To prepare: The journal entry to record the stock split.

Answer 8

(2)

To determine

To describe: The key factor that motivates H Corporation for declaring 2-for-1 stock split to be effected by a dividend payable in shares of common stock.

Answer 9

(2)

To determine

To describe: The key factor that motivates H Corporation for declaring 2-for-1 stock split to be effected by a dividend payable in shares of common stock.

Answer 10

(3)

To determine

The approximate amount of stock price, if Corporation H’s stock price is $36 at the time of stock split.

Answer 11

(3)

To determine

The approximate amount of stock price, if Corporation H’s stock price is $36 at the time of stock split.

Answer 12

Expert Solution & Answer

Answer 13

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Answer 14

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Answer 15

Ch. 18 - Identify and briefly describe the two primary...Ch. 18 - Prob. 18.2Q Ch. 18 - Prob. 18.3Q Ch. 18 - Prob. 18.4Q Ch. 18 - Prob. 18.5Q Ch. 18 - Prob. 18.6Q Ch. 18 - Prob. 18.7Q Ch. 18 - What is meant by a shareholders preemptive right?Ch. 18 - Terminology varies in the way companies...Ch. 18 - Most preferred shares are cumulative. Explain what...

Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant. To prepare: The journal entry to record the stock split.

Solution Summary: The author explains the key factor that motivates H Corporation to declare 2-for-1 stock split in the form of 100% common stock dividend.

Concept explainers

Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.

To prepare: The journal entry to record the stock split.

To describe: The key factor that motivates H Corporation for declaring 2-for-1 stock split to be effected by a dividend payable in shares of common stock.

The approximate amount of stock price, if Corporation H’s stock price is $36 at the time of stock split.

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Chapter 18 Solutions