The owners equity accounts for Trans World International are shown here:

Common stock ($1 par value): $ 55,000

Capital surplus: 239,000

Retained earnings: 790,000

Total owners equity: $ 1,084,000

Requirement 1: Assume Trans World stock currently sells for $32 per share and a stock dividend of 10 percent is declared.

(a) How many new shares will be distributed?

New shares issued:

(b) Show the new balance for each equity account.

Common stock:

Capital surplus:

Retained earnings:

Total owners equity:

Requirement 2: Now assume that instead Trans World declares a stock dividend of 14 percent.

(a) How many new shares will be distributed?

New shares issued:

(b) Show the new balance for each equity account.

Common stock:

Capital surplus:

Retained earnings:

Total owners equity: