The Following Is Information Taken from the Shareholders' Equity Section

question 9

Essay

The following is information taken from the shareholders' equity section of the projected summary financial statements of Blair Bonds Corp. to December 31, 2014, prior to the board of directors' meeting to decide on dividends or other share transactions related to its 10,000 issued common shares for the year. Instructions
Prepare in four-column comparative format, the shareholders' equity section as it would appear under each of the following possible options that the board is considering. Only one of the options will be chosen, so assume they are mutually exclusive. Describe any additional disclosure that would be required.
a. The board declares a 20% stock dividend.
b. The board approves a 3-for-1 stock split.

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Definitions:

Pitch

The quality of a sound governed by the rate of vibrations producing it; perceived as a degree of highness or lowness of a tone.

Amplitude

The height or intensity of a wave signal, which in terms of sound, determines its loudness, and in light, influences its brightness.

Decibels

A unit of measurement that indicates the intensity of sound on a logarithmic scale, representing the ratio of a particular sound pressure to a reference level.

Overtones

Higher frequency sound waves that occur in addition to the fundamental tone, contributing to the richness and color of sounds.