6. Witt Corporation has 70,000 shares of $5 par value common stock outstanding. At year-end, the company declares a 3 percent stock dividend. The market price of the stock on the declaration date is $21 per share. Four weeks later, the company issues the shares of stock to stockholders. a. Prepare the journal entry for the declaration of the stock dividend. b. Prepare the journal entry for the issuance of the stock dividend. c. Assume that the company declared a 30 percent stock dividend rather than a three percent stock dividend. Prepare the journal entries for (1) the declaration of the stock dividend and (2) the issuance of the stock dividend.

7.

Use the following data to prepare a statement of retained earnings for Shepler Corporation.

Total retained earnings originally reported at January 1	$486,000
Cash dividends declared during the year	112,500
Net income for the year	289,500
Stock dividends declared during the year	45,000

8.

Tunic Corporation was organized on April 1, with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders equity occurred:

Apr.	1	Issued 83,000 shares of common stock at $15 cash per share.
	3	Issued 5,000 shares of common stock to attorneys and promoters in exchange for their services in organizing the corporation. The services were valued at $34,000.
	8	Issued 4,000 shares of common stock in exchange for equipment with a fair market value of $51,000.
	20	Issued 9,000 shares of preferred stock for cash at $55 per share.