7. Accounting for Stock Dividends (7 points)

Hotspurs, Inc. has 100 million shares authorized, 75 million shares issued, and 65 million shares outstanding. The par value per share is $0.50, and the market value is $32 per share. Prepare the necessary journal entry for the date of declaration / issuance (assume both occur on the same date) if:

(a) (b) (c )

a 10% stock dividend is declared. a 50% stock dividend is declared. a 2 for 1 stock split is declared.

Treat the transactions independently.

Hotspurs, Inc. has 100 million shares authorized, 75 million shares issued, and 65 million shares outstanding. The par value per share is $0.50, and the market value is $32 per share. Prepare the necessary journal entry for the date of declaration / issuance (assume both occur on the same date) if: (a) a 10% stock dividend is declared. (b) a 50% stock dividend is declared. (c) a 2 for 1 stock split is declared. Treat the transactions independently