For the company in Problem 2, show how the equity accounts will change if

a. The company declares a four-for-one stock split. How many shares are outstanding now? What is the new par value per share?

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

Down below is the problem #2 to solve the first question

Common stock ($.50 par value $25,000

Capital surplus $ 215,000

Retained earnings $642,700

Total owners equity $ 882,700

1. If the companys stock currently sells for the $32 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show the equity accounts would change?
2. If the company declared a 25 percent stock dividend, how dividend, how would the accounts change?