Question: On January 1, 2017, Lenne Corporation had $1,200,000 of common stock outstanding that was issued at par and retained earnings of $750,000. The company issued 30,000 shares of common stock at par on July 1 and earned net income of $400,000 for the year.
Instructions: Journalize the declaration of a 15% stock dividend on December 10, 2017, for the following two independent assumptions.
(a) Par value is $10 and market price is $15.
(b) Par value is $5 and market price is $8.