1. Kevin Company has outstanding 75,000 shares of common stock without par or stated value, which were issued at an average price of $80 per share, and retained earnings of $3,200,000. The current market price of the common stock is $120 per share. Total authorized stock consists of 500,000 shares.

a. Give the required entry to record the declaration of a 10% stock dividend.

b. If, alternatively, the company declared a 30% stock dividend, what additional information would you need before making a journal entry to record the dividend?

2. Fogg Company has issued all of its authorized 5,000 shares of $400 par value common stock. On February 1, 2011, the board of directors declared a dividend of $12 per share payable on March 15, 2011, to stockholders of record on March 1, 2011. Give the necessary journal entries.