Greenview Water Sports has 16,000 shares of $1 par value common stock outstanding. Greenview distributes a 5% stock dividend when the market value of its stock is $25 per share.

Requirements:

1. Journalize Greenview's declaration of the stock dividend on August 15 and distribution on August 31.

2. What is the overall effect of the stock dividend on Greenview’s total assets?

3 What is the overall effect on total stockholders' equity?