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Stock Dividend

Augusta Corporation reported the following information: 50,000 shares of $4 par value common stock authorized, 42,000 shares common stock issued, 18,000 shares treasury stock.

Required:

1. What is the appropriate journal entry to record a 5% stock dividend if the market price of the common stock is $45 per share when the dividend is declared? If an amount box does not require an entry, leave it blank. Dividends Declared: Common Stock: Additional Paid-In Capital-Common Stock: