Stock Dividend}

Boyer Corporation reported the following information: common shares, no par value; unlimited shares authorized; 35,000 shares issued and outstanding.

\section*{Required:}

1. What is the appropriate journal entry to record a \(10 \%\) stock dividend if the market price of the common shares is \(\$ 30\) per share when the dividend is declared and paid?

2. What is the appropriate journal entry to record a \(30 \%\) stock dividend if the market price of the common shares is \(\$ 30\) per share when the dividend is declared and paid? The share price on the market decreases from \(\$ 30\) to \(\$ 28\) per share when the stock dividend is announced.

3. How do these transactions affect Boyer's total shareholders' equity?

OBJECTIVE 3 Cornerstone Exercise