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

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

Common stock ($.50 par value) ... $ 20,000
Capital surplus......... 285,000
Retained earnings6....... 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?


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  • CreatedMarch 13, 2014
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