Squash Delight Inc. has the following balance sheet:

Assets
Cash	$	90,000
Accounts receivable		307,000
Fixed assets		782,000
Total assets	$	1,179,000
Liabilities
Accounts payable	$	284,000
Notes payable		51,000
Common stock (100,000 shares @ $4 par)		400,000
Capital in excess of par		100,000
Retained earnings		344,000
Total liabilities & owners' equity	$	1,179,000

The firms stock sells for $10 a share. a. Show the effect on the capital accounts of a two-for-one stock split. (Do not round intermediate calculations and round your answers to the nearest whole dollar.)

	Effect of Stock Split
Common stock	$400,000
Capital excess of par	$100,000
Retained earnings	$344,000
Total equity	$844,000

b. Show the effect on the capital accounts of a 10 percent stock dividend. Part b is separate from part a. In part b do not assume the stock split has taken place. (Do not round intermediate calculations and round your answers to the nearest whole dollar.)

	Effect of Stock Dividend
Common stock
Capital excess of par
Retained earnings
Total equity	$0

c. Based on the balance in retained earnings, which of the two dividend plans is more restrictive on future cash dividends?

	Stock dividend
	Stock split