Transtech, Inc has 200,000 common shares outstanding Transtech, Inc declares and distributes a 5 stock dividend when the market value of its shares is $10 per share 1 Journalize Transtechs declaration and distribution of the stock dividend on September 30 An explanation is not required 2 What is the overall effect of the stock dividend on Transtechs total assets On total shareholders equity

Question: Transtech, Inc. has 200,000 common shares outstanding. Transtech, Inc. declares and distributes a 5% stock dividend when the market value of its shares is $10

Transtech, Inc. has 200,000 common shares outstanding. Transtech, Inc. declares and distributes a 5% stock when the market value of its shares is $10 per share.
1. Journalize Transtech’s declaration and of the stock on September 30. An explanation is not required.
2. What is the overall effect of the stock on Transtech’s total assets? On total shareholders’ equity?

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