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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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