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    arlene07's Avatar
    arlene07 Posts: 1, Reputation: 1
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    #1

    Aug 25, 2010, 01:19 PM
    The owners equity accounts are shown here:
    The owners equity accounts are shown here:

    Common Stock ($1 par value) $30,000
    Capital Surplus 185,000
    Retained earnings 610,000
    Total owners equity 825,000
    If trans world currently sells for for $42 per share and a 10 percent stock dividend is declared how many new shares will be distributed?
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
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    #2

    Aug 25, 2010, 01:45 PM
    https://www.askmehelpdesk.com/financ...ng-font-p.html
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #3

    Aug 26, 2010, 06:02 PM

    First you need to calculate the number of shares that are issued and outstanding. Hint - Par value of the stock and the total amount in the Common Stock account. The other accounts do not matter. Once you calculate the number of share issued and outstanding take this number times 10 percent and you will have your answer.
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