Richman Corporation has 120,000 shares of $5 par value common stock outstanding. It declared a 10% stock dividend on June 1 when the market price per share was $12. The shares were issued on June 30.

Perry Corporation has 120,000 shares of $5 par value common stock outstanding. It declared a 30% stock dividend on June 1 when the market price per share was $12. The shares were issued on June 30.

Prepare the necessary entries for the declaration and payment of the stock dividend. Why is it in Perry Corp the 36,000 shares is multiplied by 5 and not 12? What's the difference between these two problems that one has a paid-in capital step and the other doesn't?