Greenview Water Sports has 16,000 shares of $1 par value common stock outstanding. Greenview distributes a 5% stock dividend when the market value of its stock is $25 per share.
1. Journalize Greenview’s declaration of the stock dividend on August 15 and distribution on August 31.
2. What is the overall effect of the stock dividend on Greenview’s total assets?
3. What is the overall effect on total stockholders’ equity?