Island Company has 1,000,000 shares of common stock authorized with a par value of $3 per share of which 600,000 shares are outstanding.Island authorized a stock dividend when the market value was $8 per share,entitling its stockholders to one additional share for each share held.The par value of the stock was not changed.Assuming the declaration is not recorded separately,what entry,if any,should Island make to record distribution of the stock dividend?

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The Answer of Island Company has 1,000,000 shares of common stock authorized with a par value of $3 per share of which 600,000 shares are outstanding.Island authorized a stock dividend when the market value was $8 per share,entitling its stockholders to one additional share for each share held.The par value of the stock was not changed.Assuming the declaration is not recorded separately,what entry,if any,should Island make to record distribution of the stock dividend?

Island Company Has 1,000,000 Shares of Common Stock Authorized with a Par