Stockton Corporation has 160,000 shares of $5 par value common stock outstanding. It declared a 15% stock dividend on June 1 when the market price per share was $13. The shares were issued on June 30.
Instructions
Prepare the necessary entries for the declaration and distribution of the stock dividend.

Question

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The Answer of Stockton Corporation has 160,000 shares of $5 par value common stock outstanding. It declared a 15% stock dividend on June 1 when the market price per share was $13. The shares were issued on June 30.
Instructions
Prepare the necessary entries for the declaration and distribution of the stock dividend.

Stockton Corporation Has 160,000 Shares of $5 Par Value Common