Entries for Stock Dividends and Stock Splits)The stockholders equity accounts of G.K. Chesterton Company have the following balances on December 31, 2020.

Common stock, $10 par, 300,000 shares issued and outstanding	$3,000,000
Paid-in capital in excess of parcommon stock	1,200,000
Retained earnings	5,600,000

Shares of G.K. Chesterton Company stock are currently selling on the Midwest Stock Exchange at $37.

Instructions

Prepare the appropriate journal entries for each of the following cases.

a. A stock dividend of 5% is declared and issued.

b. A stock dividend of 100% is declared and issued.

c. A 2-for-1 stock split is declared and issued.