Raven is considering the declaration and issuance of a stock dividend at a time when the market price is $25 per share.

Required:

1.	Assuming the board of directors recommends a 6% stock dividend, prepare:
a.	the journal entry at the date of declaration
b.	the journal entry at the date of issuance
c.	shareholders equity after the issuance
2.	Assuming, instead, that a 40% stock dividend is recommended, answer a, b, and c of Requirement 1.

RAVEN COMPANY Partial Balance Sheet Common stock, $10 par $300,000.00 2 Additional paid-in capital on common stock 200,000.00 Retained earnings 300,000.00 $800,000.00