Idwell Corporation issued a 8 percent stock dividend on 25,500 shares of its $12 par common stock. At the time of the dividend, the market value of the stock was $26 per share.
Required
a. Compute the amount of the stock dividend.
Stock Dividend:
b. Show the effects of the stock dividend on the financial statements using a horizontal statements model. In the Cash Flow column, use OA to designate an operating activity, IA for an investment activity, FA for a financing activity and NA to indicate the element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus sign.)
Balance Sheet Income Statement Statement of Cash Flows
Asset =Liabilities+Common Stock+Retained Earning Revenue-Expenses=Net Income FA/IA/OA/NA.