Carla Vista Company has $120,000$ common shares outstanding. Because it wants to retain its cash for other purposes, the company

decided to issue stock dividends to its shareholders. The market price of each Carla Vista Company share was $$21.$

$($a$)$

Prepare the joumal entries if the company decides to declare and issue a $7\%$ stock dividend. $($Credit account titles are automatically

indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for

the amounts. List all debit entries before credit entries.$)$

Account and Explanation

Debit

Credit

When declared:

When issued: