Recording Stock Dividends, Fractional Shares

Tech Inc. issues a $5\%$ common stock dividend on $60,000$ shares of $$1$ par common stock issued and outstanding on August $1.$ The market price of its common stock is $$20$ per share. The small stock dividend will be distributed on August $15$ to stockholders of record on August $7.$

Required

a$.$ Record the entry on $(1)$ the date of declaration and $(2)$ the date of distribution.

b$.$ Assume that of the $3,000$ stock dividend shares, $2,640$ were whole shares and the remaining were fractional shares making up $360$ equivalent whole shares. The company's policy is to pay cash to shareholders for fractional shares. Record the entry on $(1)$ the date of declaration and $(2)$ the date of distribution.

Note: If a line in a journal entry isn't required for the transaction, select $"$N$/$A$"$ as the account name and leave the Dr$.$ and Cr$.$ answers blank $($zero$).$

$\backslash$table$[[$Date$,$Account Name,,Dr$.,$Cr$.,],[$a$.$ Aug. $1,$Retained Earnings,$,60,000,,$var$$