Exercise 11-15A (Algo) Accounting for stock dividends LO 11-7

Beacon Corporation issued a 3 percent stock dividend on 36,500 shares of its $8 par common stock. At the time of the dividend, the market value of the stock was $26 per share. Required

Compute the amount of the stock dividend.

Show the effects of the stock dividend on the financial statements using a horizontal statements model.

Prepare the journal entry to record the stock dividend.