On January 1, 2006, Abdella Corporation had $1,000,000 of common stock outstanding Journalize stock dividends.

that was issued at par. It also had retained earnings of $750,000. The company issued 60,000 (so 5)

shares of common stock at par on July 1 and earned net income of $400,000 for the year.

Instructions Journalize the declaration of a 15% stock dividend on December 10, 2006, for the following independent assumptions.

1. Par value is $10, and market value is $18.

2. Par value is $5, and market value is $20.