The owners’ equity accounts for Overby International are shown here: Common stock ($1 par value) $ 80,000 Capital surplus 200,000 Retained earnings 660,000 Total...

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Finance

The owners’ equity accounts for Overby International are shownhere:

Common stock ($1 par value) $ 80,000
Capital surplus 200,000
Retained earnings 660,000
Total owners’ equity $ 940,000

a. Assume the company's stock currently sells for$47 per share and a stock dividend of 8 percent is declared.

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

New shares issued

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

Common stock $
Capital surplus
Retained earnings
Total owners’ equity $

b. Now assume that instead the company declares astock dividend of 13 percent.

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

New shares issued

Show the new balance for each equity account. (Do not roundintermediate calculations and round your answers to the nearestwhole number, e.g., 32.)
Common stock $
Capital surplus
Retained earnings
Total owners’ equity $

Answer & Explanation Solved by verified expert

4.3 Ratings (963 Votes)

a Market price of share 47 Given stock dividend 8 New shares issued common stock value par value of share Dividend 800001 8 6400 shares So number of new shares issued 6400 shares Given Market price of share 47 Increase in par value See Answer

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The owners’ equity accounts for Overby International are shownhere: Common stock ($1 par value)$80,000Capital surplus200,000Retained earnings660,000Total owners’ equity$940,000 a. Assume the company's stock currently sells for$47 per share and a stock dividend of 8 percent is declared. How many new shares will be distributed? (Do not roundintermediate calculations and round your answer to the nearestwhole number, e.g., 32.) New shares issued Show the new balance for each equity account. (Do not roundintermediate calculations and round your answers to the nearestwhole number, e.g., 32.) Common stock$Capital surplusRetained earningsTotal owners’ equity$ b. Now assume that instead the company declares astock dividend of 13 percent.How many new shares will be distributed? (Do not roundintermediate calculations and round your answer to the nearestwhole number, e.g., 32.)New shares issued Show the new balance for each equity account. (Do not roundintermediate calculations and round your answers to the nearestwhole number, e.g., 32.)Common stock$Capital surplusRetained earningsTotal owners’ equity$


Common stock ($1 par value)	$	80,000
Capital surplus		200,000
Retained earnings		660,000
Total owners’ equity	$	940,000


Common stock		$
Capital surplus
Retained earnings
Total owners’ equity		$