Problem 18-7. Kinmi Financial Corporation is the parent company of Kinmi Bank. The companys stock split was announced in the following wire:

LOS ANGELES (BUSINESS WIRE) Jan. 20-Kinmi Financial Corporation (Nasdaq), announced that the Board of Directors has approved 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.

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.
2. If Kinmis stock price had been $38 at the time of the split, what would be its approximate value after the split (other things equal)?

Prepare the journal entry by entering your answers in the space below.

Event	General Journal	Debit	Credit
1

If Kinmis 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