Bears, Inc. has 10,000,000 million authorized shares of common stock and has 200,000 shares of $1 par common stock outstanding. On Aug. 9, when the market price of common stock was $9 per share, Bears declared a 15% stock dividend that was distributed on August 28th. On September 16, Bears declared a $0.15 cash dividend. The cash dividend was paid on Oct. 12th.

Instructions:

1. Determine the number of the shares issued in the stock dividend.
2. Journalize the declaration of the stock dividend
3. Journalize the distribution of the stock dividend
4. Compute the number of shares outstanding after the stock dividend
5. Journalize the declaration of the cah dividend
6. Journalize the payment of the cash dividend