The owners equity accounts for Octagon International are shown here: Common stock ($1 par value) .......... $25,000

Question:

The owners’ equity accounts for Octagon International are shown here:
Common stock ($1 par value) .......... $25,000
Capital surplus ................... 195,000
Retained earnings .............. 734,600
Total owners’ equity ............. $954,600
a. If Octagon stock currently sells for $30 per share and a 10 percent stock is declared, how many new shares will be distributed? Show how the equity accounts would change.
b. If Octagon declared a 25 percent stock how would the accounts change?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...