Response to the following problem:
Benetech, Inc. has 200,000 shares of $2.50 par common stock outstanding. Benetech distributes a 5% stock dividend when the market value of its stock is $10 per share.
1. Journalize Benetech's distribution of the stock dividend on September 30. An explanation is not required.
2. What is the overall effect of the stock dividend on Benetech's total assets? On total stockholders' equity?