Question
The owners equity accounts for Vulcano International are shown here: Common stock ($.60 par value) $ 37,500 Capital surplus 325,000 Retained earnings 718,120 Total owners
The owners equity accounts for Vulcano International are shown here: Common stock ($.60 par value) $ 37,500 Capital surplus 325,000 Retained earnings 718,120 Total owners equity $ 1,080,620 a-1. If the company's 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.)
a-1. | If the company's 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.) |
a-1 New shares issued - $12500
a-2. | Show how the equity accounts would change. (Do not round intermediate calculations.) |
a-2 - Common Stock - $45000
Capital Surplus - 567500
Retained Earnings - 468120
Total Owners Equity - 1080620
b-1. | If instead the company declared a 25 percent stock dividend, how many new shares will be distributed? (Do not round intermediate calculations.) |
New Shares Issues - 15625
b-2. | Show how the equity accounts would change. (Do not round intermediate calculations.) |
Common Stock - 46875
Capital Surplus ???
Retained Earnings ???
Total Owners' Equity -1080620
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