Stock Dividends the owner's equity accounts for Quadrangle International are shown here: a. If Quadrangle stock currently

Question:

Stock Dividends the owner's equity accounts for Quadrangle International are shown here:

Common stock (S1 par value) S 20,000 195,000 Capital surplus Retained eamings 537,400 Total owners' equity S752,400

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?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...