High Corporation has 60,000 shares of \(\$ 20\) par value common stock outstanding and retained earnings of \(\$ 800,000\). The company declares a 100 percent stock dividend. The market price at the declaration date is \(\$ 20\) per share.

a. Prepare the journal entries for (1) the declaration of the dividend and (2) the issuance of the dividend.

b. Assume that the company splits its stock 2 -for-1 and reduces the par value from \(\$ 20\) to \(\$ 10\) rather than declaring a 100 percent stock dividend. How does the accounting for the forward stock split differ from the accounting for the 100 percent stock dividend?