Purchase Solution

Stock Dividends and Equity Accounts

Not what you're looking for?

Ask Custom Question

The company with the following common equity accounts has declared an 8 percent stock dividend at a time when the market value of its stock is $10.00 per share. What effects on the equity accounts will the distribution of the stock dividend have?

Common stock ($1.00 par value): $450,000
Capital surplus: $1,550,000
Retained earnings: $3,000,000
Total owners equity: $5,000,000

Purchase this Solution

Solution Summary

The solution describes the effects on the equity accounts of the distribution of the stock dividend. All steps and formulas are shown enclosed in an Excel file.

Purchase this Solution

Free BrainMass Quizzes
Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Lean your Process

This quiz will help you understand the basic concepts of Lean.


This tests some key elements of major motivation theories.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.