The Owners equity accounts for Quadrangle International are shown here: Common s

Question

The Owners equity accounts for Quadrangle International are shown here:

Common stock ($1 par value) $30,000
Capital surplus 285,000
Retained earnings 649,000
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?


3.For the company in problem 2, show how the equity accounts will change if:

a. Quadrangle declares a four-for-one stock split. How many shares are outstanding now? What is he new par value per share?
b. Quadrangle declares a one-for-five reverse stock split. How many shares are outstanding now? What is the new par value per share?

Explanation / Answer

Refer to this link for the answer on spreadsheet https://docs.google.com/spreadsheet/ccc?key=0AqFfmpAerqFgdGZPdVd2WEtvSDdJQUdyY05WY0NBdWc&pli=1#gid=0

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