Question

The owners’ equity accounts for Hexagon International are shown here:
Common stock ($1 par value) ....... $ 30,000
Capital surplus .............. 185,000
Retained earnings ............ 627,500
Total owners’ equity ........... $842,500

a. If Hexagon stock currently sells for $37 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 Hexagon declared a 25 percent stock dividend, how would the accounts change?



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  • CreatedAugust 28, 2014
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