The owners' equity accounts for Quadrangle International are shown here: Common stock ($1 par value)...............$ 30,000 Capital

Question:

The owners' equity accounts for Quadrangle International are shown here:

Common stock ($1 par value)...............$ 30,000

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

Retained earnings.............................649,180

Total owners' equity........................$964,180

a. If Quadrangle 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 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...