Part A

1. On September 1st, the board of directors of Sparrow, Inc., declares and issues a stock dividend on its 10,000, $1 par, common shares. The market price of the common stock is $30 on this date.
   1. Record the stock dividend assuming a small (10%) stock dividend.
   2. Record the stock dividend assuming a large (100%) stock dividend.
   3. Record the transaction assuming a 2-for-1 stock split (hint: there may not be a journal entry to record).
2. On May 15th, Hawk Companys board declares a cash dividend of $0.15 per share payable on June 10th to all stockholders of record on May 31st.
   1. Record Hawks May 15th journal entry for the declaration of the cash dividends for its 300,000 outstanding shares of common stock.
   2. Record the June 10th payment date journal entry.