The company with the common equity accounts shown here has declared a stock divi
ID: 2461512 • Letter: T
Question
The company with the common equity accounts shown here has declared a stock dividend of 15 percent when the market value of its stock is $39 per share.
What would be the number of shares outstanding after the distribution of the stock dividend? (Do not round intermediate calculations.)
What would the equity accounts be after the stock dividend? (Do not round intermediate calculations.)
The company with the common equity accounts shown here has declared a stock dividend of 15 percent when the market value of its stock is $39 per share.
Explanation / Answer
calculation of equity accounts after stock dividends
particulars amount amount common stock 445,000*1=445,000 $ 445,000 capital surplus $ 858,000 retained earnings 3,480,800-445,000*15% 3,414,050 owners equity $ 4,717,050