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

Common stock ($1 par value)		$	45,000
Capital surplus			125,000
Retained earnings			580,000
Total owners equity		$	750,000

Requirement 1:

Assume Trans World stock currently sells for $42 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 25 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		$