5: Railway Shippers Company has a long history of paying its shareholders dividends. The company's cash position at year-end is lower than usual, so the directors are considering issuing a stock dividend instead of the usual cash dividend. They are considering the following options: Option 1: A 20 percent stock dividend. Option 2: A 2:1 stock split. Five thousand $10 par value common shares are outstanding with a market value of $25 each. a. Prepare the journal entry for Option 1. Why might this option not be attractive to some shareholders? Why is the company nevertheless issuing a stock dividend? b. What effect would Option 2 have on the financial statements