Tech Inc. issues a $5\%$ common stock dividend on $110,000$ shares of $$1$ par common stock issued and outstanding on August $1.$ The market price of its common stock is $$20$ per share. The small stock dividend will be distributed on August $15$ to stockholders of record on August $7.$

Required

a$.$ Record the entry on $(1)$ the date of declaration and $(2)$ the date of distribution.

b$.$ Assume that of the $5,500$ stock dividend shares, $4,840$ were whole shares and the remaining were fractional shares making up $660$ equivalent whole shares. The company's policy is to pay cash to shareholders for fractional shares.

Record the entry on $(1)$ the date of declaration and $(2)$ the date of distribution.

Note: If a line in a journal entry isn't required for the transaction, select $"$N$/$A$"$ as the account name and leave the Dr$.$ and $Cr.$ answers blank $($zero$).$

$\backslash$table$[[$Date$,$Account Name,Dr$.,$Cr$.],[$a$.$ Aug. $1,$Retained Earnings,$110,000,,0,,-],[,0,5,500],[$Paid$-$in Capital in Excess of Par$-$Common Stock,$0,104,500],[$To record declaration of dividend.,,$],[$a$.$ Aug. $15,,5,500,0],[$Common Stock,$0,5,500],[$To record issuance of dividend.,,$],[$b$.$ Aug. $1,,0,0],[,0,0],[,0,0],[,0,0],[$To record declaration of dividend.,,$],[$b$.$ Aug. $15,,0,0],[,0,0],[$To record issuance of stock dividend.,,$],[$b$.$ Aug. $15,,0,0],[,0,0],[$To record issuance of cash dividend.,,$]]$