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?

A 2-for-1 stock split means that each shareholder will receive two shares for every share they currently own. In this case, Siewert Inc. is conducting a stock split, but it is not considered a stock dividend, and no actual assets are distributed. Because of this, there generally isn't a journal entry to record for the stock split itself.

Here's what happens during the stock split:

- The number of shares outstanding doubles from 60 million to 120 million shares. - The par value per share is halved, from $2 to $1 per share.

After the stock split, Siewert Inc. shareholders will have twice as many shares, each with a par value of $1 instead of the original $2. The market value of the stock will adjust accordingly on the stock market, typically halving as well, so it could be around $8.50 per share after the split (though the market determines the final price).

Since no journal entry is required for the split itself (if it's not treated as a stock dividend), the books of Siewert Inc. would mainly reflect the change in the number of shares and the par value per share after the split becomes effective.

For the par value per share after the split: Previously, it was $2 per share. Since the split is 2-for-1, the new par value will be $2 divided by 2, which equals $1 per share.