Large Stock Dividend and Forward Stock Split

High corporation has 60,000 shares of $20 par value common stock outstanding and retained earnings of $80,000. The company declares 100 percent stock dividend. The market price at the deceleration date is $20 per share.

a. Prepare journal entries for (1) the deceleration of the dividend and (2) the issuance of the dividend.

b. Assume that the company splits its stocks 2 -for-1 and reduces the par value for $20 to $10 rather then declaring 100 percent stock dividend. How does the accounting for the forward stock split differ from the accounting for the 100 percent stock dividend