The following exhibit presents a statement of stockholders equity for Caprock Corporation:

Caprock Corporation

Statement of Stockholders Equity

For the Year Ended December 31, 2021

Contributed Capital:

Common Stock Issued and Outstanding, 15,000 shares of $140 par $2,100,000

Paid-in Capital in Excess of Par 200,000

Retained Earnings 700,000

Total Stockholders Equity $3,000,000

Assume that the market value of the common stock is $172 per share on the date on which the stock dividend or stock split is declared. Suppose the corporations board of directors declares the following (consider each situation independently of each other):

1. A 19% stock dividend b) 26% stock dividend c) 7-for-1 stock split.

Required:

1. Prepare the necessary journal entries to record the declaration of stock dividends and stock splits.
2. Prepare the statement of stockholders equity after each of the above transactions. (You may use the template on the next page).

Journal Entries

Date	Accounts and Explanation	Debit	Credit

Caprock Corporation

Statement of Stockholders Equity

For the Year Ended December 31, 2021

	After a 19% Stock Dividend	After a 26% Stock Dividend	After a 7-for-1 Stock Split
Common Stock Issued and Outstanding	$ ( shares of $ par)	( shares of $ par)	( shares of $ par)
Paid-in Capital in Excess of Par (PIE)	$	$	$
Retained Earnings	$	$	$
Total Stockholders Equity	$	$	$