Exercise 10-70 Stock Dividend

The balance sheet of Cohen Enterprises includes the following stockholders' equity section:

Common stock, $1 par, 330,000 shares authorized, 150,000 shares issued and outstanding	$150,000
Additional paid-in capitalcommon stock	341,800
Total capital stock	$491,800
Retained earnings	173,000
Total equity	$664,800

Required:

1. On April 15, 2019, when its stock was selling for $18 per share, Cohen Enterprises issued a small stock dividend. After making the journal entry to recognize the stock dividend, Cohen's total capital stock increased by $270,000. In percentage terms, what was the size of the stock dividend? %

2. Ignoring the small stock dividend discussed in Requirement 1, assume that on June 1, 2019, when its stock was selling for $22 per share, Cohen issued a large stock dividend. After making the journal entry to recognize the stock dividend, Cohen's retained earnings decreased by $75,000. In percentage terms, what was the size of the stock dividend? %