Question

In: Finance

#1) The owners’ equity accounts for Trans World International are shown here: Common stock ($1 par...

#1) The owners’ equity accounts for Trans World International are shown here: Common stock ($1 par value) $ 85,000 Capital surplus 227,000 Retained earnings 750,000 ________________________________________ ________________________________________ ________________________________________ ________________________________________ Total owners’ equity $ 1,062,000 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ Requirement 1: Assume Trans World stock currently sells for $28 per share and a stock dividend of 20 percent is declared. (a) How many new shares will be distributed? New shares issued (b) Show the new balance for each equity account. Common stock $ Capital surplus Retained earnings ________________________________________ ________________________________________ ________________________________________ ________________________________________ Total owners’ equity $ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ Requirement 2: Now assume that instead Trans World declares a stock dividend of 24 percent. (a) How many new shares will be distributed? New shares issued (b) Show the new balance for each equity account. Common stock $ Capital surplus Retained earnings ________________________________________ ________________________________________ ________________________________________ ________________________________________ Total owners’ equity $ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________

Solutions

Expert Solution

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

#1) The owners’ equity accounts for Trans World International are shown here: Common stock ($1 par...
#1) The owners’ equity accounts for Trans World International are shown here: Common stock ($1 par value) $ 85,000 Capital surplus 227,000 Retained earnings 750,000 ________________________________________ ________________________________________ ________________________________________ ________________________________________ Total owners’ equity $ 1,062,000 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ Requirement 1: Assume Trans World stock currently sells for $28 per share and a stock dividend of 20 percent is declared. (a) How many new shares will be distributed? New shares issued (b) Show the new balance for each equity account....
The owners’ equity accounts for Overby International are shown here:    Common stock ($1 par value)...
The owners’ equity accounts for Overby International are shown here:    Common stock ($1 par value) $ 40,000 Capital surplus 188,000 Retained earnings 620,000 Total owners’ equity $ 848,000     a. Assume the company's stock currently sells for $43 per share and a stock dividend of 15 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               ...
The owners’ equity accounts for Overby International are shown here:    Common stock ($1 par value)...
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 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 round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)    New shares issued               ...
The owners’ equity accounts for Overby International are shown here:    Common stock ($1 par value)...
The owners’ equity accounts for Overby International are shown here:    Common stock ($1 par value) $ 55,000 Capital surplus 218,000 Retained earnings 720,000 Total owners’ equity $ 993,000     a. Assume the company's stock currently sells for $25 per share and a stock dividend of 8 percent is declared.    How many new shares will be distributed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)    New shares issued               ...
The owners’ equity accounts for Vidi International are shown here: Common stock ($.50 par value) $...
The owners’ equity accounts for Vidi International are shown here: Common stock ($.50 par value) $ 35,000 Capital surplus 320,000 Retained earnings 708,120 Total owners’ equity $ 1,063,120 a-1 If the company's stock currently sells for $20 per share and a 15 percent stock dividend is declared, how many new shares will be distributed? (Do not round intermediate calculations.) a-2 Show how the equity accounts would change. (Do not round intermediate calculations.) b-1 If instead the company declared a 25...
The owners’ equity accounts for Hexagon International are shown here:      Common stock ($.40 par value)...
The owners’ equity accounts for Hexagon International are shown here:      Common stock ($.40 par value) $ 32,500   Capital surplus 315,000   Retained earnings 698,120      Total owners’ equity $ 1,045,620    a-1. The company declares a four-for-one stock split. How many shares are outstanding now? (Do not round intermediate calculations.)   New shares outstanding    a-2. The company declares a four-for-one stock split. What is the new par value per share? (Do not round intermediate calculations and round your answer to 3...
The owners’ equity accounts for Freya International are shown here: Common stock ($.80 par value) $...
The owners’ equity accounts for Freya International are shown here: Common stock ($.80 par value) $ 25,000 Capital surplus 370,000 Retained earnings 808,120 Total owners’ equity $ 1,203,120 a-1 If Freya stock currently sells for $30 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? (Do not round intermediate calculations.) New shares issued a-2 Show how the equity accounts would change. (Do not round intermediate calculations.) Common stock $ Capital surplus Retained...
The owners' equity accounts for Vidi International are shown here:      Common stock ($.40 par value)...
The owners' equity accounts for Vidi International are shown here:      Common stock ($.40 par value) $ 40,000   Capital surplus 350,000   Retained earnings 768,120      Total owners’ equity $ 1,158,120    a-1. If the company declares a two-for-one stock split, how many shares are outstanding now? (Do not round intermediate calculations.) a-2. What is the new par value per share? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b-1. If the company declares a...
The owners’ equity accounts for Vidi International are shown here:      Common stock ($.40 par value)...
The owners’ equity accounts for Vidi International are shown here:      Common stock ($.40 par value) $ 44,000   Capital surplus 360,000   Retained earnings 788,120      Total owners’ equity $ 1,192,120    a-1 If the company's stock currently sells for $30 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? (Do not round intermediate calculations.)       a-2 Show how the equity accounts would change. (Do not round intermediate calculations.)       b-1 If instead the...
The owners’ equity accounts for Freya International are shown here:      Common stock ($.40 par value)...
The owners’ equity accounts for Freya International are shown here:      Common stock ($.40 par value) $ 44,000   Capital surplus 360,000   Retained earnings 788,120      Total owners’ equity $ 1,192,120    a-1 If Freya stock currently sells for $30 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? (Do not round intermediate calculations.)      New shares issued       a-2 Show how the equity accounts would change. (Do not round intermediate calculations.)   ...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT