On April 30, the equity section of Isaac's Icecream Bar consists 81. Share Capital - Ordinary: Share Premium - Ordinary: Retained Earnings $1,000,000 $10,000 $750,000 Isaac is considering the following two options: Оption I: Declaring a 10% share dividend on the 70,000, $12 par value shares outstanding Option 2: Effecting a 4-for-1 share split that will reduce par value to $3 per share. The current market price is $15 per share.
On April 30, the equity section of Isaac's Icecream Bar consists 81. Share Capital - Ordinary: Share Premium - Ordinary: Retained Earnings $1,000,000 $10,000 $750,000 Isaac is considering the following two options: Оption I: Declaring a 10% share dividend on the 70,000, $12 par value shares outstanding Option 2: Effecting a 4-for-1 share split that will reduce par value to $3 per share. The current market price is $15 per share.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required:
Prepare a tabular summary of the effects of the alternative actions by completing the following
table.
After Share
After Share
Before Action
Dividend
Split
Accounts
Share Capital - Ordinary
Share Premium - Ordinary
Retained Earnings
Total Equity
Outstanding Shares
Par Value Per Share

Transcribed Image Text:On April 30, the equity section of Isaac's Icecream Bar consists of:
Share Capital - Ordinary:
Share Premium - Ordinary:
$1,000,000
$10,000
Retained Earnings
$750,000
Isaac is considering the following two options:
Оption I:
Declaring a 10% share dividend on the 70,000, $12 par value shares outstanding
Оption 2:
Effecting a 4-for-1 share split that will reduce par value to $3 per share.
The current market price is $15 per share.
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