Stock Dividends}

Crystal Corporation has the following information regarding its common shares:

No par, with unlimited shares authorized, 183,700 shares issued and outstanding On August 22, 2018, Crystal declared and paid a \(15 \%\) stock dividend when the market price of the common shares was \(\$ 30\) per share.

\section*{Required:}

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

2. Prepare the journal entry to record the declaration and payment, assuming it was a \(30 \%\) stock dividend. Assume the share price on the market decreases from \(\$ 30\) to \(\$ 28\) per share when the stock dividend is announced.

\section*{Exercise