Rollins Corporation issued a 5 percent stock dividend on 10,000 shares of its ($ 10) par common

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Rollins Corporation issued a 5 percent stock dividend on 10,000 shares of its \(\$ 10\) par common stock. At the time of the dividend, the market value of the stock was \(\$ 14\) per share.
Required

a. Compute the amount of the stock dividend.

b. Show the effects of the stock dividend on the financial statements using a horizontal statements model like the following one.

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c. Prepare the journal entry to record the stock dividend.

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