Exercise 6, Stock Dividends:

a.

5/1, Year 6:A corporation declares a small common stock dividend equal to 10% of 800,000 shares outstanding, 900,000 issued and 2,000,000 authorized. The par value of the stock is $1. The fair or market value per share on this date is $24 per share.6/22, Year 6:Date of record.7/15, Year 6:The corporation issues the common stock dividend declared on 5/1 Year 6.

5/1/Yr 6

6/22/Yr 6

7/15/Yr 6

b. This exercise is independent of a. above.

5/1, Year 6:A corporation declares a large common stock dividend equal to 40% of 800,000 shares outstanding, 900,000 issued and 2,000,000 authorized. The par value of the stock is $1. The fair or market value per share on this date is $24 per share.6/22, Year 6:Date of record.7/15, Year 6:The corporation issues the common stock dividend declared on 5/1, Year 6.

5/1/Yr 6

6/22/Yr 6

7/15/Yr 6