Chapter $14$ Pt $2$ I Declaring Dividends on Stock

E$14\mathrm{.}14($LO $3)($Entries for Stock Dividends and Stock Splits$)$ The stockholders' equity accounts of G$.$K$.$ Chesterton Company have the following balances on December $31,2025.$

Common stock, $$10$ par, $300,000$ shares issued and outstanding $$3,000,000$

Paid$-$in capital in excess of par$-$common stock $1,200,000$

Retained earnings $,5,600,000$

Shares of G$.$K$.$ Chesterton Company stock are currently selling on the Midwest Stock Exchange at $$37.$ PV

Instructions

Prepare the appropriate journal entries for each of the following cases.

a$.$ A stock dividend of $5\%$ is declared and issued.

b$.$ A stock dividend of $100\%$ is declared and issued.

Lively Addition: For a$,$ b$,$ and c$,$ also indicate the "number of shares issued"

c$.$ A $2-$for$-1$ stock split is declared and issued. and the "par value" to be displayed on the year$-$end Balance Sheet.

$\backslash$table$[[$Part$,$Journal Entrixes,# of Shares Issued $($on B$/$S$),$$ Par Value $($on B$/$S$)]]$