Current Attempt in Progress On October 31, the equity section of Oriole AG consists of share capital-ordinary CHF560,000 and retained earnings CHF965,000. Oriole is considering the following two courses of action: (1) declaring a 10% share dividend on the 56,000, CHF 10 par value shares outstanding, or (2) effecting a 2-for-1 share split that will reduce par value to CHF5 per share. The current market price is CHF15 per share.. Prepare a tabular summary of the effects of the alternative actions on the components of equity, outstanding shares, and par value per share. Equity Share capital-ordinary CHF Share premium-ordinary Retained earnings Total equity Outstanding shares Par value per share CHF CHF Before Action CHF CHF CHF After Share Dividend CHF CHF CHF After Share Split

Current Attempt in Progress On October 31, the equity section of Oriole AG consists of share capital-ordinary CHF560,000 and retained earnings CHF965,000. Oriole is considering the following two courses of action: (1) declaring a 10% share dividend on the 56,000, CHF 10 par value shares outstanding, or (2) effecting a 2-for-1 share split that will reduce par value to CHF5 per share. The current market price is CHF15 per share.. Prepare a tabular summary of the effects of the alternative actions on the components of equity, outstanding shares, and par value per share. Equity Share capital-ordinary CHF Share premium-ordinary Retained earnings Total equity Outstanding shares Par value per share CHF CHF Before Action CHF CHF CHF After Share Dividend CHF CHF CHF After Share Split

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Current Attempt in Progress
On October 31, the equity section of Oriole AG consists of share capital-ordinary CHF560,000 and retained earnings CHF965,000.
Oriole is considering the following two courses of action: (1) declaring a 10% share dividend on the 56,000, CHF 10 par value shares
outstanding, or (2) effecting a 2-for-1 share split that will reduce par value to CHF5 per share. The current market price is CHF15 per
share.
Prepare a tabular summary of the effects of the alternative actions on the components of equity, outstanding shares, and par value per
share.
Equity
Share capital-ordinary
Share premium-ordinary
Retained earnings
Total equity
Outstanding shares
Par value per share
CHF
CHF
CHF
Before
Action
CHF
CHF
CHF
After
Share
Dividend
CHF
CHF
CHF
After
Share
Split

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