Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on october 31, the stockholders' equity section of

On October 31, the stockholders' equity section of Blossom Company's balance sheet consists of commonstock...

90.2K

Verified Solution

Question

Accounting

image
On October 31, the stockholders' equity section of Blossom Company's balance sheet consists of commonstock $728,000 and retained earnings $401,000. Blossomis considering the following two courses of action:(1) declaringa 5% stock dividend on the 91.000,$8 par value shares outstanding or (2) effecting a 2 for-1 stock split that will reduce par value to $4 per share. The current market price is $17 per share. On October 31, the stockholders' equity section of Blossom Company's balance sheet consists of commonstock $728,000 and retained earnings $401,000. Blossomis considering the following two courses of action:(1) declaringa 5% stock dividend on the 91.000,$8 par value shares outstanding or (2) effecting a 2 for-1 stock split that will reduce par value to $4 per share. The current market price is $17 per share

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

What could Lehman Brothers have done to address its Liquidity concerns, which initiated the run on...

Biology
1.2K views

Create an annotated bibliography where you will locate and summarize 8 scholarly sources related to child development...

Basic Math
1.2K views

Label the type of each variable listed in the dataset as either quantitative or categorical, and...

Accounting
1.2K views

(2 pts) Accrual basis vs. basis – revenue and expense recognition: Suppose Capaldi Corp. provides travel services...

Basic Math
1.2K views

1 24 An electric winch lifts a weight on the end of a 3 m...

Statistics
1.2K views

15 A store manager records the number of customers at the store each week for...

Calculus
1.2K views

Find an exponential regression curve for the data setx 0 ...

Accounting
1.2K views

Snug-As-A-Bug Blankets has the following inventory data: July 1 Beginning inventory 30 units at $60...

Accounting
1.2K views

Land costing $69,500 was sold for $91,000 cash. The loss on the sale was reported...

Accounting
1.2K views

XYZ Ltd will increase its production volume for Product A next year.To promote Product A...

Accounting
1.2K views

Shamrock Services Inc. is trying to establish the standard labour cost of a typical oil...

Accounting
1.2K views

The thudaka company has budgeted it's conversion cost for the small lamp production as$65000 for...