As of 6/30/09 General Motors had issued 800,000 shares of $1 par common stock. All of those shares were outstanding. On 7/2/09, General Motors Directors declared and distributed a type of stock dividend (technically a split) on its common stock. At that date, General Motors common stock trading at $33 per share.

1. Please assume that the transaction was in the form of a 15 percent stock dividend. What was the change in retained earnings causes by the stock dividend?
2. Instead, assume that the transaction was in the form of a 7:5 stock split, effected as a stock dividend. What is the journal entry, if any needed, to record the stock dividend on 07/2/09?