Ruby Red Corp. stockholder's equity section of the balance sheet looks like this on July 30:

Stockholder's Equity:
Common Stock, $2 par, 200,000 shares authorized, 70,000 shares issued and outstanding	140,000
Paid in Capital in excess of Par Value, Common Stock	625,000
Total Paid in Capital		765,000
Retained Earnings		575,000
Total Stockholder's Equity		1,340,000

a) Prepare the journal entry to record a 7% stock dividend declared and distributed on July 31 when the market rate was $15 per share.

Journal

Date	Description	Debit	Credit
July 31
July 31
July 31

b) Post the entries to the T-accounts provided.

Common Stock, $2 par

Debit	Credit
Double line	Double line

Retained Earnings

Debit	Credit
Double line	Double line

Paid in Capital in Excess of Par Value, Common Stock

Debit	Credit
Double line	Double line

c) Show how the stockholder's equity section of the balance sheet will look after this transaction.

Stockholder's Equity:
Common Stock, $2 par, 200,000 shares authorized, shares issued and outstanding
Paid in Capital in excess of Par Value, Common Stock
Total Paid in Capital
Retained Earnings
Total Stockholder's Equity

d) Compare the provided July 30 stockholder's equity section to the one you completed in part C. For each item, select increase, decrease, or no change to explain how the equity section changed from July 30 to July 31.

Common Stock, $2 par
Paid in Capital in excess of Par Value, Common Stock
Retained Earnings
Total Stockholder's Equity