Ruby Red Corp. stockholder's equity section of the balance sheet looks like this on July 30:

Stockholder's Equity:
Common Stock, $4 par, 225,000 shares authorized, 75,000 shares issued and outstanding	300,000
Paid in Capital in excess of Par Value, Common Stock	625,000
Total Paid in Capital		925,000
Retained Earnings		570,000
Total Stockholder's Equity		1,495,000

a) Prepare the journal entry to record a 7% stock dividend declared and distributed on July 31 when the market rate was $17 per share.

Journal

Date	Description	Debit	Credit
July 31	Incorrect
July 31	Incorrect
July 31	Incorrect

b) Post the entries to the T-accounts provided.

Common Stock, $4 par

Debit	Credit
Double line	Double lineIncorrect

Retained Earnings

Debit	Credit
Double line	Double lineIncorrect

Paid in Capital in Excess of Par Value, Common Stock

Debit	Credit
Double line	Double lineIncorrect

c) Show how the stockholder's equity section of the balance sheet will look after this transaction.

Stockholder's Equity:
Common Stock, $4 par, 225,000 shares authorized, Incorrect shares issued and outstanding
Paid in Capital in excess of Par Value, Common Stock
Total Paid in Capital
Retained Earnings
Total Stockholder's Equity