The owners equity accounts for Overby 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?

$______

Show the new balance for each equity account.

Common stock $ ____

Capital surplus $_____

Retained earnings $____

Total owners equity $ ____

b. Now assume that instead the company declares a stock dividend of 26 percent. How many new shares will be distributed? New shares issued ___?

Show the new balance for each equity account.

Common stock______		$
Capital surplus________			$
Retained earnings______		$
Total owners equity_____		$