On July 31, 202X, Ling Corporation had the following stockholders’ equity:

On August 5, 202X, the board of directors declared a 7% stock dividend to be
issued on September 6, 202X, to the stockholders of record on August 19, 202X.
At time of declaration the market price was $25 per share. Prepare the appropriate journal entries for this stock dividend.

Transcribed Image Text:

Common Stock, $13 par value, authorized 89,000 shares, 59,000 shares issued and outstanding Retained Earnings Total Stockholders' Equity $ 767,000 240,000 $1,007,000