The following is information taken from the shareholders' equity section of the projected summary financial statements of Blair Bonds Corp. to December 31, 2014, prior to the board of directors' meeting to decide on dividends or other share transactions related to its 10,000 issued common shares for the year. Instructions
Prepare in four-column comparative format, the shareholders' equity section as it would appear under each of the following possible options that the board is considering. Only one of the options will be chosen, so assume they are mutually exclusive. Describe any additional disclosure that would be required.
a. The board declares a 20% stock dividend.
b. The board approves a 3-for-1 stock split.

Question

The following is information taken from the shareholders' equity section of the projected summary financial statements of Blair Bonds Corp. to December 31, 2014, prior to the board of directors' meeting to decide on dividends or other share transactions related to its 10,000 issued common shares for the year.  Instructions
Prepare in four-column comparative format, the shareholders' equity section as it would appear under each of the following possible options that the board is considering. Only one of the options will be chosen, so assume they are mutually exclusive. Describe any additional disclosure that would be required. 
a. The board declares a 20% stock dividend.
b. The board approves a 3-for-1 stock split.

Quizplus · Accepted Answer

The Answer of The following is information taken from the shareholders' equity section of the projected summary financial statements of Blair Bonds Corp. to December 31, 2014, prior to the board of directors' meeting to decide on dividends or other share transactions related to its 10,000 issued common shares for the year.  Instructions
Prepare in four-column comparative format, the shareholders' equity section as it would appear under each of the following possible options that the board is considering. Only one of the options will be chosen, so assume they are mutually exclusive. Describe any additional disclosure that would be required. 
a. The board declares a 20% stock dividend.
b. The board approves a 3-for-1 stock split.

The Following Is Information Taken from the Shareholders' Equity Section