Assume that the company declared a 100 percent stock dividend instead of the 100 percent stock split. The market price of the common share was $21 when the dividend was declared.

7-a. Does issuing a 100% stock dividend instead of a 100% stock split have any effects on shareholders equity components?

multiple choice

Yes

No

7-b. Prepare the journal entry for the declaration of 100 percent stock dividend. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)