On October 31, the stockholders' equity section of Blossom Company consists of common stock $250,000...

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Accounting

On October 31, the stockholders' equity section of Blossom Company consists of common stock $250,000 and retained earnings $850,000.
Blossom is considering the following two courses of action: (1) declaring a 4% stock dividend on the 25,000,$10 par value shares outstanding,
or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $14 per share.
Prepare a tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and par
value per share.
Stockholders' equity
Paid-in capital
Common stock
In excess of par
Total paid-in capital
Retained earnings
Total stockholders' equity
Outstanding shares
Par value per share
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