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Question 2 The owners' equity accounts for Goodway International are shown here: Common stock (S1 par value) Share premium Retained earnings Total owners' equity $100,000
Question 2 The owners' equity accounts for Goodway International are shown here: Common stock (S1 par value) Share premium Retained earnings Total owners' equity $100,000 $200,000 S675.000 $975.000 (a) If the company's stock currently sells for S16 per share and a 5 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change (9 marks) (b) If the company declared a 30 percent stock dividend, how would the accounts change? (8 marks) (c) Show how the equity accounts will change, if the company declares a two-for-one stock split. How many shares are outstanding now? What is the new par value per share? (8 marks)
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