The owners equity accounts for Alexander International are shown here: Common stock ($.50 par value) ...$ 20,000

Question:

The owners’ equity accounts for Alexander International are shown here:

Common stock ($.50 par value) ...$ 20,000

Capital surplus.........285,000

Retained earnings 6.......38,120

Total owners’ equity.....$933,120

a. If Alexander stock currently sells for $30 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 Alexander 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...