E11-19 (Supplement 11B) Journalizing Small and Large Stock Dividends [LO 11-S2]

On December 31, the stockholders' equity section of the balance sheet of R & B Corporation reflected the following: On February 1 of the following year, a 10 percent stock dividend was issued. The market value of the stock on February 1 was $20 per share. Required: Prepare the journal entry to record (a) the small 10 percent stock dividend and. alternatively, (b) the large 100 percent stock dividend. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Record the issue of a 10 percent stock dividend on the 27,000 shares of stock outstanding with a market value of $20 per share. Record the issue of a 100 percent stock dividend on the 27,000 shares of stock outstanding with a par value of $10 per share