Stock Split and 100% Stock Dividend The Rubin Company wants to double its number of shares outstanding. The company president asks the controller how a two-for-one stock split differs from a 100% stock dividend. Rubin has 300,000 shares ($1 par) outstanding at a market price of $30 per share. The current stockholders' equity section is:

Common shares, 300,000 issued and outstanding Additional paid-in capital Retained income 1. Prepare the journal entry for a two-for-one stock split. 2. Prepare the journal entry for a 100% stock dividend. $ 300,000 2,300,000 4,500,000 3. Explain the difference between a two-for-one stock split and a 100% stock dividend.