One Product Corp. (OPC) incorporated at the beginning of last year. The balances on its postclosing trial balance prepared on December 31, at the end of its first year of operations, were:

Cash	$	19,500
Accounts Receivable		8,250
Allowance for Doubtful Accounts		885
Inventory		12,060
Prepaid Rent		1,600
Equipment		25,000
Accumulated Depreciation		2,400
Accounts Payable		0
Sales Tax Payable		500
FICA Payable		600
Withheld Income Taxes Payable		500
Salaries and Wages Payable		1,600
Unemployment Tax Payable		300
Unearned Revenue		4,500
Interest Payable		495
Note Payable (long-term)		22,000
Common Stock		13,300
Additional Paid-In Capital, Common		19,210
Retained Earnings		4,120
Treasury Stock		4,000

The following information is relevant to the first month of operations in the following year:

	OPC sell its inventory at $150 per unit, plus sales tax of 6%. OPCs January 1 inventory balance consists of 180 units at a total cost of $12,060. OPCs policy is to use the FIFO method, recorded using a perpetual inventory system.
	The $1,600 in Prepaid Rent relates to a payment made in December for January rent this year.
	The equipment was purchased on July 1 of last year. It has a residual value of $1,000 and an expected life of five years. It is being depreciated using the straight-line method.
	Employee wages are $4,000 per month. Employees are paid on the 16th for the first half of the month and on the first day of the following month for the second half of each month. Withholdings each pay period include $250 of income taxes and $150 of FICA taxes. These withholdings and the employers matching contribution are paid monthly on the second day of the following month. In addition, unemployment taxes of $50 are accrued each pay period, and will be paid on March 31.
	Unearned Revenue is for 30 units ordered and paid for in advance by two customers in late December. One order of 25 units is to be filled in January, and the other will be filled in February.
	Note Payable arises from a three-year, 9 percent bank loan received on October 1 last year.
	The par value on the common stock is $2 per share.
	Treasury Stock arises from the reacquisition of 500 shares at a cost of $8 per share.

January Transactions

1.	On 1/01, OPC paid employees salaries and wages that were previously accrued on December 31.
2.	A truck is purchased on 1/02 for $10,000 cash. It is estimated this vehicle will be used for 50,000 miles, after which it will have no residual value.
3.	Payroll withholdings and employer contributions for December are remitted on 1/03.
4.	OPC declares a $0.50 cash dividend on each share of common stock on 1/04, to be paid on 1/10.
5.	A $950 customer account is written off as uncollectible on 1/05.
6.	On 1/06, recorded sales of 175 units of inventory on account. Sales tax is charged but not yet collected or remitted to the state.
7.	Sales taxes of $500 which had been collected and recorded in December are paid to the state on 1/07.
8.	On 1/08, OPC issued 300 shares of treasury stock for $2,400.
9.	Collections from customers on account, totaling $8,500, are recorded on 1/09.
10.	On 1/10, OPC distributes the $0.50 cash dividend declared on January 4. The companys stock price is currently $5 per share.
11.	OPC purchases on account and receives 70 units of inventory on 1/11 for $4,410.
12.	The equipment purchased last year for $25,000 is sold on 1/15 for $23,000 cash. Record depreciation for the first half of January prior to recording the equipment disposal.
13.	Payroll for January 1-15 is recorded and paid on 1/16. Be sure to accrue unemployment taxes and the employers matching share of FICA taxes.
14.	Having sold the equipment, OPC pays off the note payable in full on 1/17. The amount paid is $22,585 which includes interest accrued in December and an additional $90 interest through January 17.
15.	On 1/27, OPC records sales of 30 units of inventory on account. Sales tax is charged but not yet collected or remitted.
16.	A portion of the advance order from December (25 units) is delivered on 1/29. No sales tax is collected on this transaction because the customer is a United States governmental organization that is exempt from sales tax.
17.	To obtain funds for purchasing new equipment, OPC issued bonds on 1/30 with a total face value of $90,000, stated interest rate of 5 percent, annual compounding, and six-year maturity date. OPC received $81,420 from the bond issuance, which implies a market interest rate of 7 percent.
18.	On 1/31, OPC records units-of-production depreciation on the vehicle (truck), which was driven 1,900 miles this month.
19.	OPC estimates that 2% of the ending accounts receivable balance will be uncollectible. Adjust the applicable accounts on 1/31, using the allowance method.
20.	On 1/31, adjust for January rent expired.
21.	Accrue January 31 payroll on 1/31, which will be payable on February 1. Be sure to accrue unemployment taxes and the employers matching share of FICA taxes.
22.	Accrue OPCs corporate income taxes on 1/31, estimated to be $3,750.

Rather than distribute a cash dividend in January, OPC considered issuing a 30% stock dividend on common stock. What journal entry would OPC record had a 30% stock dividend been issued?

Record the issuance of 30% stock dividend.

Note: Enter debits before credits.

Transaction

General Journal

Debit

Credit

1	Retained Earnings
	Common Stock