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    Stock Dividend

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    The owners' equity accounts for a company are shown here:

    Common stock ($1 par value) $ 10,000
    Capital surplus 194,000
    Retained earnings 633,000
    ======
    Total owners' equity $837,000

    a. If a companys stock currently sells for $29/ share and a 9% stock dividend is declared, _____new shares will be distributed. Show how the equity accounts change:
    Common stock ($1 par value) $ ______
    Capital surplus ______
    Retained earnings ______
    =====
    Total owners' equity $ _______

    b. If Hexagon declared a 28%stock dividend,______ new shares will be distributed. Show how the equity accounts would change:

    Common stock ($1 par value) $ ______
    Capital surplus ______
    Retained earnings _______
    ========
    Total owners' equity $ _______

    *(all answers rounded to the nearest dollar)
    this is what i have so far, can you please assist from here:

    29 x 10,000=290,000 total market value of equity
    with a 9% dividend each person will recieve 1 additional share for each 9 owned.
    and the new total of shares outstanding is now 11,000

    for the same problem with these numbers:

    Common stock ($1 par value) $ 9,000
    Capital surplus 169,000
    Retained earnings 551,000
    ======
    Total owners' equity $729,000

    a. stock currently sells for $28/share and a 12% stock dividend is declared, ____ new shares will be distributed. Show how the equity accounts would change:

    Common stock ($1 par value) $______
    Capital surplus ______
    Retained earnings ______
    ======
    Total owners' equity $ _____

    b. If Hexagon declared a 29% stock dividend,____new shares will be distributed. Show how the equity accounts would change:

    Common stock ($1 par value) $ ______
    Capital surplus ______
    Retained earnings ______
    ======
    Total owners' equity $ ______

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    https://brainmass.com/business/accounting-for-corporations/stock-dividend-60784

    Solution Preview

    The owners' equity accounts for a company are shown here:

    Common stock ($1 par value) $ 10,000
    Capital surplus 194,000
    Retained earnings 633,000
    ======
    Total owners' equity $837,000

    a. If a companys stock currently sells for $29/ share and a 9% stock dividend is declared, _____new shares will be distributed. Show how the equity accounts change:
    Common stock ($1 par value) $ ______
    Capital surplus ______
    Retained earnings ______
    =====
    Total owners' equity $ _______

    The stock dividend are absed on the total shares outstanding. There are 10,000 shares. A 9% stock dividend ...

    Solution Summary

    The solution explains the impact of a stock dividend on the stockholders equity accounts of a company

    $2.19

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