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

a) Okanagan declares a four-for-one stock split. How many shares are outstanding now?

b) Okanagan declares a one-for-five reverse stock split. How many shares are outstanding now?

Reference this ......

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

common stock ( 1 dollar par value) 40,000.

Capital surplus 345,000

Retained earnings 748,900

Total owners' equity 1,133,900

a) If Okanagan 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 Okanagan declared a 25 percent stock dividend, how would the accounts change?