Question
The owners equity accounts for Freya International are shown here: Common stock ($0.60 par value) $45,000 Capital surplus $365,000 Retained earnings $798,120 Total owners equity
The owners equity accounts for Freya International are shown here:
Common stock ($0.60 par value) $45,000
Capital surplus $365,000
Retained earnings $798,120
Total owners equity $1,208,120
a-1. If Freya stock currently sells for $20 per share and a 15 percent stock dividend is declared, how many new shares will be distributed? (Do not round intermediate calculations.)
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 20 percent stock dividend, how many new shares will be distributed?
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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