The shareholders equity of Raven Company is as shown:

RAVEN COMPANY

Partial Balance Sheet

1	Common stock, $10 par	$200,000.00
2	Additional paid-in capital on common stock	100,000.00
3	Retained earnings	200,000.00
4		$500,000.00

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.

Prepare the appropriate journal entries for the declaration on December 1 and payment or distribution of the dividend on December 15, assuming the board of directors recommends a 6% stock dividend.

General Journal Instructions

PAGE 1

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4
5

Prepare the appropriate journal entries for the declaration on December 1 and payment or distribution of the dividend on December 15, assuming the board of directors recommends a 40% stock dividend.

General Journal Instructions

PAGE 1

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4

Prepare the shareholders equity section of Ravens balance sheet at December 31, assuming the board of directors recommends a 6% stock dividend.

RAVEN COMPANY

Partial Balance Sheet

December 31, 2019

1	Common stock
2	Additional paid-in capital on common stock
3	Additional paid-in capital from stock dividend
4	Retained earnings
5

Prepare the shareholders equity section of Ravens balance sheet at December 31, assuming the board of directors recommends a 40% stock dividend.

RAVEN COMPANY

Partial Balance Sheet

December 31, 2019

1	Common stock
2	Additional paid-in capital on common stock
3	Retained earnings
4