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If trans world stock currently sells for 42 per share and a

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Reference no: EM13618718

The owners' equity accounts for Trans World International are shown here:

Common stock ($1 par value) $45,000

Capital surplus 125,000

Retained earnings 580,000

Total owners' equity 750,000

a. If Trans World stock currently sells for $42 per share and a 1 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.

b. If Trans World declared a 25 percent stock dividend, how would the accounts change?

Reference no: EM13618718

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