Crystal Corporation has the following information regarding its common stock : Its common stock is $20 par,

Question:

Crystal Corporation has the following information regarding its common stock: Its common stock is $20 par, with 300,000 shares authorized, 132,000 shares issued, and 130,600 shares outstanding. In August 2009, Crystal declared and paid a 15 percent stock dividend when the market price of the common stock was $28 per share.

Required:

Prepare the journal entry to record declaration and payment of this stock dividend.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...