Analysis of the equity accounts, Financial Accounting

Analysis of the equity accounts

Share Dividends/Bonus Issue.

Response to the following problem:

The owners' equity accounts for Fig Jam International are shown here:

a. If Fig Jam shares currently sell for $35 per share and a 10% bonus issue is declared, how many new shares will be distributed? Show how the equity accounts would change?

b. After Fig Jam carries out the bonus issue, what is the new share price?

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Financial Accounting: Analysis of the equity accounts

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Financial Accounting: Analysis of the equity accounts

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