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The owners equity accounts for Freya International are shown here: Common stock ($.50 par value) $ 35,000 Capital surplus 320,000 Retained earnings 708,120 Total owners

The owners equity accounts for Freya International are shown here:

Common stock ($.50 par value) $ 35,000
Capital surplus 320,000
Retained earnings 708,120
Total owners equity $ 1,063,120

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.)

New shares issuedx______________?

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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