Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Exercise 1 8 - 2 0 ( Algo ) Stock split; Rina Financial Corporation [ LO 1 8 - 8 ] Rina Financial Corporation is
Exercise Algo Stock split; Rina Financial Corporation LO
Rina Financial Corporation is the parent company of Rina Bank. The company's stock split was announced in the following wire:
LOS ANGELES January BUSINESS WIRERina Financial Corporation Nasdaq announced that the Board of Directors has approved a twoforone stock split, to be effected in the form of a percent common stock dividend. Rina Financial Corporation stockholders of record at the close of business on January 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
At the time of the stock split, million shares of common stock, $ 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 $ at the time of the split, what would be its approximate value after the split other things equal
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started