How many new shares will be distributed

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Reference no: EM132027239

Question: The owners' equity accounts for Overby International are shown here:

Common stock ($1 par value) $ 70,000

Capital surplus 197,000

Retained earnings 650,000

Total owners' equity $ 917,000

a. Assume the company's stock currently sells for $46 per share and a stock dividend of 5 percent is declared.

How many new shares will be distributed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

New shares issued

Show the new balance for each equity account. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

Common stock $

Capital surplus

Retained earnings

Total owners' equity $

b. Now assume that instead the company declares a stock dividend of 10 percent.

How many new shares will be distributed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

New shares issued

Show the new balance for each equity account. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

Common stock $

Capital surplus

Retained earnings

Total owners' equity $

Reference no: EM132027239

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