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equity non shar tha carrying amount of $824,000, with 82,400 common shares issued and retained earnings with a carrying amount of $243,200. Blossom is considering the following three courses of action: (1) paying a $0.75 cash dividend, (2) declaring a 10% stock dividend, or (3) effecting a 3-for-1 stock split. The current market price for its common shares is $15 per share. Complete the following tabular summary of the effects of the alternative actions on Blossom's shareholders' equity and number of common shares. Total assets Total liabilities Common shares Retained earnings Total shareholders' equity (1) (2) Before Action After Cash Dividend After Stock Dividend $1.271.200 $ $ $ $204,000 $ 824,000 243.200 1,067.200 Total liabilities and shareholders' equity $1,271,200 $ Number of common shares 82,400 $

equity non shar tha carrying amount of $824,000, with 82,400 common shares issued and retained earnings with a carrying amount of $243,200. Blossom is considering the following three courses of action: (1) paying a $0.75 cash dividend, (2) declaring a 10% stock dividend, or (3) effecting a 3-for-1 stock split. The current market price for its common shares is $15 per share. Complete the following tabular summary of the effects of the alternative actions on Blossom's shareholders' equity and number of common shares. Total assets Total liabilities Common shares Retained earnings Total shareholders' equity (1) (2) Before Action After Cash Dividend After Stock Dividend $1.271.200 $ $ $ $204,000 $ 824,000 243.200 1,067.200 Total liabilities and shareholders' equity $1,271,200 $ Number of common shares 82,400 $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On October 31, Blossom Corporation's liabilities totalled $204,000. Its shareholders' equity consisted of common shares with a carrying amount of $824,000, with 82,400 common shares issued and retained earnings with a carrying amount of $243,200. Blossom is considering the following three courses of action: (1) paying a $0.75 cash dividend, (2) declaring a 10% stock dividend, or (3) effecting a 3-for-1 stock split. The current market price for its common shares is $15 per share. Complete the following tabular summary of the effects of the alternative actions on Blossom's shareholders' equity and number of common shares. (1) (2) Before Action After Cash Dividend After Stock Dividend A Total assets $1.271.200 $ $ Total liabilities Common shares $204,000 $ 824,000 $ Retained earnings 243,200 Total shareholders' equity 1,067,200 Total liabilities and shareholders' equity $1,271,200 $ $ Number of common shares 82,400
Transcribed Image Text:On October 31, Blossom Corporation's liabilities totalled $204,000. Its shareholders' equity consisted of common shares with a carrying amount of $824,000, with 82,400 common shares issued and retained earnings with a carrying amount of $243,200. Blossom is considering the following three courses of action: (1) paying a $0.75 cash dividend, (2) declaring a 10% stock dividend, or (3) effecting a 3-for-1 stock split. The current market price for its common shares is $15 per share. Complete the following tabular summary of the effects of the alternative actions on Blossom's shareholders' equity and number of common shares. (1) (2) Before Action After Cash Dividend After Stock Dividend A Total assets $1.271.200 $ $ Total liabilities Common shares $204,000 $ 824,000 $ Retained earnings 243,200 Total shareholders' equity 1,067,200 Total liabilities and shareholders' equity $1,271,200 $ $ Number of common shares 82,400
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