Problem 144 Stock Dividends [LO 3]
The owners’ equity accounts for Masterson International are
shown here: 



Common stock ($1 par value) 

$ 
50,000 

Capital surplus 


191,000 

Retained earnings 


630,000 






Total owners’ equity 

$ 
871,000 








a. Assume the company's stock
currently sells for $44 per share and a stock dividend of 20
percent is declared. 

How many new shares will be distributed?
(Do not round intermediate calculations and round your
answer to the nearest whole number, e.g., 32.) 


Show the new balance for each equity account.
(Do not round intermediate calculations and round your
answers to the nearest whole number, e.g., 32.) 


b. Now assume that instead the
company declares a stock dividend of 26 percent. 

How many new shares will be distributed?
(Do not round intermediate calculations and round your
answer to the nearest whole number, e.g., 32.) 


Show the new balance for each equity account.
(Do not round intermediate calculations and round your
answers to the nearest whole number, e.g., 32.) 
