Epic Inc. has 11,100 shares of $2 par value common stock outstanding. Epic declares a 16% stock dividend on July 1 when the stocks market value is $19 per share. The stock dividend is distributed on July 20. Prepare journal entries for (a) declaration and (b) distribution of the stock dividend.

Journal entry worksheet

• Record the declaration of a 16% stock dividend.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
July 01

Journal entry worksheet

• Record the distribution of 16% stock dividend.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
July 20