Problem: Module $3$ Textbook Problem $18$

Learning Objective: $3-15$ Show how stock dividends and stock splits affect financial statements

Beacon Corporation issued a $5$ percent stock dividend on $35,500$ shares of its $$7$ par common stock. At the time of the dividend, the

market value of the stock was $$22$ 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. In the Cash Flow column,

indicate whether the item is an operating activity $($OA$),$ investing activity $($IA$),$ or financing activity $($FA$).$ If an element was not affected

by the event, leave the cell blank.

Complete this question by entering your answers in the tabs below.

investing activity $($IA$),$ or financing activity $($FA$).$ If an element was not affected by the event, leave the cell blank. $($Enter any decreases to account balances with a minus sign.$)$