On October 31, the stockholders equity section of Blossom Companys balance sheet consists of common stock $546,000 and retained earnings $401,000. Blossom is considering the following two courses of action:

(1)		Declaring a 5% stock dividend on the 91,000 $6 par value shares outstanding
(2)		Effecting a 2-for-1 stock split that will reduce par value to $3 per share.

The current market price is $17 per share. Prepare a tabular summary of the effects of the alternative actions on the companys stockholders equity and outstanding shares.

On October 31, the stockholders' equity section of Blossom Company's balance sheet consists of common stock $546,000 and retained earnings $401,000. Blossom is considering the following two courses of action: (1) Declaring a 5% stock dividend on the 91,000 so par value shares outstanding (2) Effecting a 2-for-1 stock split that will reduce par value to $3 per share. The current market price is $17 per share. Prepare a tablar summary of the effects of the alternative actions on the company's stockholders' equity and outstanding shares. Blossom Company's Balance Sheet Before Action After Stock Dividend After Stock Split Stockholders' equity Paid-in capital Retained earnings Total stockholders' equity s Outstanding shares