Stock Dividend}

The statement of financial position of Cohen Enterprises Ltd. includes the following shareholders' equity section (Assume the date of the financial statements is before the stock dividend):

\section*{Required:}
1. On April 15, 2018, when its shares were selling for \(\$ 18\) per share, Cohen Enterprises issued a stock dividend. After making the journal entry to recognize the stock dividend, Cohen's total share capital increased by \(\$ 270,000\). In percentage terms, what was the size of the stock dividend?
2. Ignoring the stock dividend discussed in (1), assume that on June 1, 2018, when its shares were selling for \(\$ 2\) per share, Cohen Enterprises issued a stock dividend. After making the journal entry to recognize the stock dividend, Cohen's retained earnings decreased by \(\$ 166,000\). In percentage terms, what was the size of the stock dividend?

\section*{OBJECTIVE 3 Exercise

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Common shares, no par, unlimited shares Retained earnings authorized, 150,000 shares issued and outstanding $491,800 173,000 Total equity $664,800