2. Jan 1 declared a stock dividend of 6%. They have 2 million share authorized, 1,200,000 unissued, and 200,000 share of treasury stock. Feb 1 is the record date, and march 1 is the payment date. The market value is 5 per share while the par value is 2 per share. Please prepare the journal entries associated with this question.

3. On January 15, 2010, the board of directors of Tower International declared a 4 for 1 stock split of its $8 par value common stock, of which 4,200,000 shares were authorized and 800,000 were issued and 30,000 were held in treasury stock. The market value on that date was $20 per share. On the same date, the balance of additional paid in capital was $6,000,000 and the balance of retained earnings was $14,000,000. Answer the following questions using the information above.