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Stock Dividend

Augusta Corporation reported the following information: $50,000$ shares of $$4$ par value common stock authorized, $42,000$ shares common stock issued, $18,000$ shares treasury stock.

Required:

What is the appropriate journal entry to record a $5\%$ stock dividend if the market price of the common stock is $$45$ per share when the dividend is declared? If an amount box does not require an entry, leave it blank.

What is the appropriate journal entry to record a $27\%$ stock dividend if the market price of the common stock is $$45$ per share when the dividend is declared? If an amount box does not require an entry, leave it blank.

Conceptual Connection: How do these transactions affect Augusta's total stockholders' equity?

Total stockholders' equity $x$ by these transactions.

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