Company Z has 8 million shares of common stock authorized with a par value of $1 and a market price of $72.There are 4 million outstanding shares and 1 million shares held in treasury stock.
Required:
Part a.Prepare the journal entry if the company declares and distributes a 10% stock dividend.
Part b.Show the effect of the 10% stock dividend on assets,liabilities,and stockholders' equity.
Part c.Prepare the journal entry if the company declares and distributes a 100% stock dividend.
Part d.Show the effect of the 100% stock dividend on assets,liabilities,and stockholders' equity.

Question

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The Answer of Company Z has 8 million shares of common stock authorized with a par value of $1 and a market price of $72.There are 4 million outstanding shares and 1 million shares held in treasury stock.
Required:
Part a.Prepare the journal entry if the company declares and distributes a 10% stock dividend.
Part b.Show the effect of the 10% stock dividend on assets,liabilities,and stockholders' equity.
Part c.Prepare the journal entry if the company declares and distributes a 100% stock dividend.
Part d.Show the effect of the 100% stock dividend on assets,liabilities,and stockholders' equity.

Company Z Has 8 Million Shares of Common Stock Authorized