Beacon Corporation issued a 7 percent stock dividend on 35,000 shares of its $8 par common stock. At the time of the dividend, the market value of the stock was $24 per share.

Required

1. Compute the amount of the stock dividend.

2. Show the effects of the stock dividend on the financial statements using a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank.

Complete this question by entering your answers in the tabs below. Required A Required B Show the effects of the stock dividend on the financial statements using a horizontal statements model. In the Cash Flow column, indicate whether investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank. (Enter any decreases to account BEACON CORPORATION Horizontal Statements Model Balance Sheet Income Statement Assets Liabilities + Stockholders' Equity Revenue Expense = Net Income Statement Floi Cash = + Common Stock + PIC in Excess + Retained Earnings 0 II = 0 + 0 X + 0 X + 0 X 0 0 = 0 0