Exercise $12\mathrm{.}8($Algo$)$ Cash Dividends, Stock Dividends, and Stock Splits $($LO$12-4)$

HiTech Manufacturing Company has $1,000,000$ shares of $$1$ par value capital stock outstanding on January $1.$ The following equity

transactions occurred during the current year.

June $1$ Declared a cash dividend of $$0\mathrm{.}55$ per share.

July $1$ Paid the $$0\mathrm{.}55$ cash dividend to stockholders.

Aug. $1$ Declared a $5$ percent stock dividend. Market price of stock was $$19$ per share.

Sept$\mathrm{.}10$ Issued shares resulting from the $5$ percent stock dividend declared on August $1.$

a$.$ Prepare journal entries to record the above transactions.

b$.$ Compute the number of shares of capital stock outstanding at year$-$end.

c$.$ What is the par value per share of HiTech Manufacturing stock at the end of the year?

d$.$ Determine the effect of each of the following on total stockholders' equity: stock split, declaration and payment of a cash dividend,

declaration and distribution of a stock dividend.

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

Prepare journal entries to record the above transactions. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry

required" in the first account field.$)$

Journal entry worksheet

Record declaration of stock dividend.