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On April 1st, XYZ Co. declared a 10% stock dividend. Prior to the dividend, XYZ Co. has outstanding 30,000 shares of $10 par value common

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On April 1st, XYZ Co. declared a 10% stock dividend. Prior to the dividend, XYZ Co. has outstanding 30,000 shares of $10 par value common stock and a Retained Earnings account balance of $500,000. On April 1st, the market value of XYZ Co.'s stock was $26 per share. The dividend was paid on April 15th. Prepare a journal entry for the following dates: a) April 1st b) April 15th c) What would be the new balance for Retained Earnings after the 10% stock dividend? d) What would be the total effect [dollar increase or decrease] in stockholders' equity after the 10% stock dividend

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