The company with the common equity accounts shown here has declared a 15 percent
ID: 2749750 • Letter: T
Question
The company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $31 per share.
Common stock ($1 par value) $465,000
Capital surplus $862,000
Retained earnings $3,880,800
Total owners’ equity $5,207,800
What would be the number of shares outstanding, after the distribution of the stock dividend?
New shares outstanding: _______________
What would the equity accounts be after the stock dividend?
Common stock $________________
Capital surplus:__________________
Retained earnings: _______________
Total owners’ equity $:____________
The company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $31 per share.
Common stock ($1 par value) $465,000
Capital surplus $862,000
Retained earnings $3,880,800
Total owners’ equity $5,207,800
What would be the number of shares outstanding, after the distribution of the stock dividend?
New shares outstanding: _______________
What would the equity accounts be after the stock dividend?
Common stock $________________
Capital surplus:__________________
Retained earnings: _______________
Total owners’ equity $:____________
Explanation / Answer
New shares oustanding 534,750 465000*1.15 Common stock $ 534,750 465000*1.15 Capital surplus $ 2,954,500 862000+69750*(31-1) Retained earnings $ 3,115,300 5207800-69750*(31-1)