Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kinmi Financial Corporation is the parent company of kinmi Bank. The company's stock split was announced in the following wire: LOS ANGELES (BUSINESS WIRE) Jan

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Kinmi Financial Corporation is the parent company of kinmi Bank. The company's stock split was announced in the following wire: LOS ANGELES (BUSINESS WIRE) Jan 20-Kinmi Financial Corporation (Nasdag), 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. Kinmi 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, 26.5 million shares of common stock, $.001 par per share, were outstanding Required: 1. Prepare the journal entry, if any, that kinmi recorded at the time of the stock split 3. If Kinmi's stock price had been $38 at the time of the split, what would be its approximate value after the split (other things equal)? Required: 1. Prepare the journal entry, if any, that kinmi recorded at the time of the stock split 3. If Kinmi's stock price had been $38 at the time of the split, what would be its approximate value after the split (other things equal)? Complete this question by entering your answers in the tabs below. Required 1 Required 3 Prepare the journal entry, if any, that kinmi recorded at the time of the stock split. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet Record the stock split effected in the form of stock dividend. Record the stock split effected in the form of stock dividend. Note: Enter debits before credits. General Journal Debit Credit Event 1 Record entry Clear entry View general journal At the time of the stock split, 26.5 million shares of common stock. $.001 par per share, were outstanding Required: 1. Prepare the journal entry, if any, that kinmi recorded at the time of the stock split 3. If Kinmi's stock price had been $38 at the time of the split, what would be its approximate value after the split (other things equal)? Complete this question by entering your answers in the tabs below. Required 1 Required 3 If Kinmi's stock price had been $38 at the time of the split, what would be its approximate value after the split (other things equal)? (Enter your answer in dollars rounded to 2 decimal places.) Approximate value per share

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: James D. Stice, Earl K. Stice, Fred Skousen

17th Edition

032459237X, 978-0324592375

More Books

Students also viewed these Accounting questions

Question

Write an Essay on academic dishonesty

Answered: 1 week ago

Question

How effective have these groups been in the past?

Answered: 1 week ago

Question

What are their reputations?

Answered: 1 week ago

Question

How serious a response is warranted to this situation?

Answered: 1 week ago