Company $Z$ has $8$ million shares of common stock authorized with a par value of $$1$ and a market price of $$72.$ There are $4$ million outstanding shares and $1$ million shares held in treasury stock.

Required:

a$.$ Prepare the journal entry if the company declares and distributes a $10\%$ stock dividend.

b$.$ Show the effect of the $10\%$ stock dividend on assets, liabilities, and stockholders' equity.

c$.$ Prepare the journal entry if the company declares and distributes a $100\%$ stock dividend.

d$.$ Show the effect of the $100\%$ stock dividend on assets, liabilities, and stockholders' equity.

Complete this question by entering your answers in the table below.

Required $A$

Prepare the journal entry if the company declares and distributes a $100\%$ stock dividend. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field. Enter your answers in $-$dollars and not in millions.$)$

Journal entry worksheet

A

Record the declaration and distribution of the $100\%$ stock dividend.