On July 31, 2014, just prior to year-end, the Board of Directors of Watts and Peppicelli Ltd declared a
5% stock dividend.At the time the dividend was paid the company had 80,000 shares of common stock issued and outstanding.The articles of incorporation indicated that the company was authorized to issue up to 200,000 common shares.At the time the dividend was declared, the book value of the common shares was $20.The shares were issued for an average cost of $23 and had a market value at the date of the stock dividend declaration of $38 per share.Retained earnings amounted to $900,000.
Required:

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The Answer of On July 31, 2014, just prior to year-end, the Board of Directors of Watts and Peppicelli Ltd declared a
5% stock dividend.At the time the dividend was paid the company had 80,000 shares of common stock issued and outstanding.The articles of incorporation indicated that the company was authorized to issue up to 200,000 common shares.At the time the dividend was declared, the book value of the common shares was $20.The shares were issued for an average cost of $23 and had a market value at the date of the stock dividend declaration of $38 per share.Retained earnings amounted to $900,000.
Required:

On July 31, 2014, Just Prior to Year-End, the Board