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Problem 14-4 Stock Dividends [LO 3] The owners’ equity accounts for Masterson International are shown here:...

Problem 14-4 Stock Dividends [LO 3]

The owners’ equity accounts for Masterson 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? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Show the new balance for each equity account. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
b. Now assume that instead the company declares a stock dividend of 26 percent.
  
How many new shares will be distributed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
  
Show the new balance for each equity account. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
  
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