On January 1, 2025, Lanie Limited had £1,000,000 of share capital—ordinary for shares issued at par. It also had retained earnings of £750,000. The company issued 40,000 ordinary shares at par on July 1 and earned net income of £400,000 for the year.

Instructions Journalize the declaration of a 15% share dividend on December 10, 2025, for the following independent assumptions.

a. Par value is £10, and market price is £18.

b. Par value is £5, and market price is £20.