The owners’ equity accounts for Freya International are shown here: Common stock ($.60 par value) $ 30,000 Capital surplus 310,000 Retained earnings 688,120 Total owners’ equity $ 1,028,120 a-1 If Freya stock currently sells for $20 per share and a 20 percent stock dividend is declared, how many new shares will be distributed? (Do not round intermediate calculations.) New shares issued a-2 Show how the equity accounts would change. (Do not round intermediate calculations.) Common stock $ Capital surplus Retained earnings Total owners’ equity $ b-1 If instead Freya declared a 25 percent stock dividend, how many new shares will be distributed? (Do not round intermediate calculations.) New shares issued b-2 Show how the equity accounts would change. (Do not round intermediate calculations.) Common stock $ Capital surplus Retained earnings Total owners’ equity $
The owners’ equity accounts for Freya International are shown here: Common stock ($.60 par value) $ 30,000 Capital surplus 310,000 Retained earnings 688,120 Total owners’ equity $ 1,028,120 a-1 If Freya stock currently sells for $20 per share and a 20 percent stock dividend is declared, how many new shares will be distributed? (Do not round intermediate calculations.) New shares issued a-2 Show how the equity accounts would change. (Do not round intermediate calculations.) Common stock $ Capital surplus Retained earnings Total owners’ equity $ b-1 If instead Freya declared a 25 percent stock dividend, how many new shares will be distributed? (Do not round intermediate calculations.) New shares issued b-2 Show how the equity accounts would change. (Do not round intermediate calculations.) Common stock $ Capital surplus Retained earnings Total owners’ equity $
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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| The owners’ equity accounts for Freya International are shown here: |
| Common stock ($.60 par value) | $ | 30,000 |
| Capital surplus | 310,000 | |
| |
688,120 | |
| Total owners’ equity | $ | 1,028,120 |
| a-1 | If Freya stock currently sells for $20 per share and a 20 percent stock dividend is declared, how many new shares will be distributed? (Do not round intermediate calculations.) |
| New shares issued |
| a-2 | Show how the equity accounts would change. (Do not round intermediate calculations.) |
| Common stock | $ |
| Capital surplus | |
| Retained earnings | |
| Total owners’ equity | $ |
| b-1 | If instead Freya declared a 25 percent stock dividend, how many new shares will be distributed? (Do not round intermediate calculations.) |
| New shares issued |
| b-2 | Show how the equity accounts would change. (Do not round intermediate calculations.) |
| Common stock | $ |
| Capital surplus | |
| Retained earnings | |
| Total owners’ equity | $ |
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