Jasper, Inc. had issued and outstanding 250,000 shares of $8 par value common stock at January 1, 2013 with a retained earnings balance of $750,000. Jasper issued a 12% stock dividend to its common shareholders. At the time of the dividend the market value of the stock was $17 per share.
Required:
a) What is the total dollar amount of the stock dividend?
b) Prepare the entry to record the stock dividend.
c) How many shares are outstanding after the stock dividend?

Question

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The Answer of Jasper, Inc. had issued and outstanding 250,000 shares of $8 par value common stock at January 1, 2013 with a retained earnings balance of $750,000. Jasper issued a 12% stock dividend to its common shareholders. At the time of the dividend the market value of the stock was $17 per share.
Required:
a) What is the total dollar amount of the stock dividend?
b) Prepare the entry to record the stock dividend.
c) How many shares are outstanding after the stock dividend?