Friday Night, Inc. has $17,000$ shares of $$1$ par value common stock outstanding. Friday Night, Inc. distributes a $10\%$ stock dividend when the market value of its stock is $$17$ per share.

Read the requirements.

Start by journalizing the declaration of the stock dividend on August $15.$

Now journalize the distribution of the stock dividend on August $31.$

Requirement $2.$ What is the overall effect of the stock dividend on Friday Night, Inc.$\text{'}$s total assets?

The stock dividends have no effect on total assets.

Requirement $3.$ What is the overall effect on total stockholders' equity?

The stock dividends have

on total stockholders' equity.