Egrett Corporation issued a 4 percent stock dividend on 20,000 shares of its $10 par common stock.

Question:

Egrett Corporation issued a 4 percent stock dividend on 20,000 shares of its $10 par common stock. At the time of the dividend, the market value of the stock was $30 per share.

Required

a. Compute the amount of the stock dividend.
b. Show the effects of the stock dividend on the financial statements using a horizontal statements model like the following one.

Egrett Corporation issued a 4 percent stock dividend on 20,000

c. Prepare the journal entry to record the stock dividend.

Financial Statements
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