Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 1 8 - 2 0 ( Algo ) Stock split; Rina Financial Corporation [ LO 1 8 - 8 ] Rina Financial Corporation is

image text in transcribed
Exercise 18-20(Algo) Stock split; Rina Financial Corporation [LO18-8]
Rina Financial Corporation is the parent company of Rina Bank. The company's stock split was announced in the following wire:
LOS ANGELES January 20 BUSINESS WIRE-Rina Financial Corporation (Nasdaq), announced that the Board of Directors has approved a two-for-one stock split, to be effected in the form of a 100 percent common stock dividend. Rina Financial Corporation stockholders of record at the close of business on January 31 will receive one additional share of common stock for every share of common stock then held. Distribution of additional shares issued as a result of the split is expected to occur on or about February 15.
At the time of the stock split, 42.5 million shares of common stock, $0.001 par per share, were outstanding.
Required:
Prepare the journal entry, if any, that Rina recorded at the time of the stock split.
If Rina's stock price had been $54 at the time of the split, what would be its approximate value after the split (other things equal)?
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson

6th edition

978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163

More Books

Students also viewed these Accounting questions

Question

How is vacation and sick time accrued?

Answered: 1 week ago