Blossom Developments is authorized to issue 500,000 shares. To date, the company has 178,600 shares issued and 142,700 outstanding, Blossom is considering declaring a dividend to its common shareholders. Management is recommending that the board of directors consider the following options at the next meeting, scheduled for March 1: 1. 2. The board of directors should approve a motion directing the company to pay a dividend of $0.50 per share on May 1 to shareholders of record on April 15; or The board should approve a motion directing the company to declare a 10% stock dividend. Blossom would distribute 1 common share for every 10 common shares currently held. The company's common shares are currently selling for $47 per share.
Blossom Developments is authorized to issue 500,000 shares. To date, the company has 178,600 shares issued and 142,700 outstanding, Blossom is considering declaring a dividend to its common shareholders. Management is recommending that the board of directors consider the following options at the next meeting, scheduled for March 1: 1. 2. The board of directors should approve a motion directing the company to pay a dividend of $0.50 per share on May 1 to shareholders of record on April 15; or The board should approve a motion directing the company to declare a 10% stock dividend. Blossom would distribute 1 common share for every 10 common shares currently held. The company's common shares are currently selling for $47 per share.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Blossom Developments is authorized to issue 500,000 shares. To date, the company has 178,600 shares issued and 142,700
outstanding, Blossom is considering declaring a dividend to its common shareholders. Management is recommending that the board
of directors consider the following options at the next meeting, scheduled for March 1:
1.
2.
(a)
The board of directors should approve a motion directing the company to pay a dividend of $0.50 per share on May 1 to
shareholders of record on April 15; or
The board should approve a motion directing the company to declare a 10% stock dividend. Blossom would distribute 1
common share for every 10 common shares currently held. The company's common shares are currently selling for $47 per
share.
Prepare any necessary journal entries for the cash dividend on March 1. April 15, and May 1. (Credit account titles are automatically
indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for
the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)
Account Titles and Explanation
Date
. !
Debit
Credit
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