Question: Journalizing a small stock dividend Lakeside Water Sports has 14,000 shares of $3 par value common stock outstanding. Lakeside distributes a 5% stock dividend when the market value of its stock is $22 per share.
Requirements: 1. Journalize Lakeside's declaration of the stock dividend on September 15 and distribution on September 30.
2. What is the overall effect of the stock dividend on Lakeside's total assets?
3. What is the overall effect on total stockholders' equity?