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ACC 291 Week 4 Individual Assignment Exercises E11-15, E12-1, & E12-2,11-6A
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On October 31, the stockholder’s  equity section of Omar Company consists of common stock $600,000 and retained earnings $900,000. Omar is considering the following two courses of action:

(1) declaring a 5% stock dividend on the 60,000, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $14 per share.


Prepare a tabular summary of the effects of the alternative actions on the components of stockholders equity and outstanding shares. Use the following column headings: Before Action, After Stock Dividend, and After Stock Split.

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