Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Legal Aspects Of Trade Finance

Authors: Charles Chatterjee

1st Edition

1857433890, 978-1857433890

More Books

Students also viewed these Finance questions

Question

a neglect of quality in relationship to international competitors;

Answered: 1 week ago