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(Solved): 13.Stock Dividends: The owners equity accounts for Quadrangle International are shown here:Common ...
13.Stock Dividends: The owners’ equity accounts for Quadrangle International are shown here:
Common stock ($1 par value) Capital surplus
Retained earnings
Total owners’ equity
$ 20,000 195,000 537,400
$752,400
a) If Quadrangle stock currently sells for $25 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.
b) If Quadrangle declared a 25 percent stock dividend, how would the accounts change?
14.Stock Splits: For the company in Problem 13, show how the equity accounts will change if:
a) Quadrangle declares a four-for-one stock split. How many shares are outstanding now? What is the new par value per share?
b) Quadrangle declares a one-for-five reverse stock split. How many shares are outstanding now? What is the new par value per share?
all the question with Ex..
13. Stock Dividends: The owners' equity accounts for Quadrangle International are shown here: a) If Quadrangle stock currently sells for \( \$ 25 \) per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change. b) If Quadrangle declared a 25 percent stock dividend, how would the accounts change? 14. Stock Splits: For the company in Problem 13, show how the equity accounts will change if: a) Quadrangle declares a four-for-one stock split. How many shares are outstanding now? What is the new par value per share? b) Quadrangle declares a one-for-five reverse stock split. How many shares are outstanding now? What is the new par value per share?
Expert Answer
Before stock dividend: Number of shares outstanding =Common stock / Par value per share=$20,000$1=20,