Gotta Have It, Inc. is considering giving a 50% stock dividend or a 1.5 to 1 stock split. What would be the effect of each option? Gotta Have It currently has $6 par common stock with 225,000 shares authorized, 85,000 shares issued and outstanding. a) Calculate the effect on authorized shares, outstanding shares and the par value under each scenario. Authorized Shares Outstanding Shares Par Value Stock Dividend Stock Split by Prepare the required journal entries assuming stock is issued upon declaration. If no journal entry is required, enter that in the account space of the first line of the journal entry (Hint: use the Account List - click to pop open to help you with your journal entries). Stock Dividend: Date Description Stock Split: Date Description Debit Credit Debit Credit c) Taking the journal entries into account, how would the Stockholder's Equity section look AFTER each option? Original Stock Dividend Stock Split Common Stock $10,000 Retained Earnings 350,000 Total Stockholder's Equity 860,000 > Next Question