Jalisco,Inc. ,had issued and outstanding 250,000 shares of $8 par value common stock at January 1,2016 with a retained earnings balance of $750,000.Jalisco 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 Jalisco,Inc. ,had issued and outstanding 250,000 shares of $8 par value common stock at January 1,2016 with a retained earnings balance of $750,000.Jalisco 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?