Required:Prepare a tabular summary of the effects of the alternative actions by completing the followingtable.After ShareAfter ShareBefore ActionDividendSplitAccountsShare Capital - OrdinaryShare Premium - OrdinaryRetained EarningsTotal EquityOutstanding SharesPar Value Per Share On April 30, the equity section of Isaac's Icecream Bar consists of:Share Capital - Ordinary:Share Premium - Ordinary:$1,000,000$10,000Retained Earnings$750,000Isaac is considering the following two options:Оption I:Declaring a 10% share dividend on the 70,000, $12 par value shares outstandingОption 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.

Shares: It is a unit of capital. Shares are only held by a corporation. Total capital of a…

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.

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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